Regina Doherty (Meath East, Fine Gael) | Oireachtas source

The amendment refers to the look-back and look-forward reference period. I listened to the Deputies' concerns on Second Stage and I am therefore happy to be able to say we compromised and reduced the reference period from 18 months, our initial offering, to 12 months with respect to banded hours. The reference period was selected for several reasons. As Deputy Brady noted, it is the normal length of a business cycle and it should be sufficiently long enough to take account of seasonal fluctuations and the normal peaks and troughs of most businesses. It is an easy divider that will help make this more workable both for employees and employers. It is the reference period recommended by the Oireachtas Joint Committee on Jobs, Enterprise and Innovation in its report following the scrutiny of the Sinn Féin Private Members' Bill on banded hours contracts. The Bill also proposed the introduction of a banded hours arrangement. Deputies will recall there was considerable support for the 12-month reference period during Committee Stage.

It is also important to remember the look-back period is identical to the look-forward period.

If the look-back period was reduced, then the look-forward period would be reduced too. Therefore, if the amendments were carried an employee would only be guaranteed to be put on a band of hours, whatever the band of hours, from the previous six months for the following six months. I hope that, on balance, the Deputy would agree that a 12 month reference period offers better protection from the employee's point of view.

Deputies might recall that the University of Limerick study recommended a reference period of six months. However, when the study was put out to public consultation there was a genuine and overwhelmingly strong response from many quarters highlighting the difficulties or unintended consequences that would arise. For example, in a seaside hotel in the west of Ireland the levels of business fluctuate significantly between the high summer season and the quiet winter season. A review of an employee's hours over the period from May to September would produce a different result to a review of the same worker's hours over the six month period from October to April. An employee who works 35 hours per week during the high season but only ten hours during the winter low season could put in a request at the end of the high season showing that, on average, she worked 35 hours per week. Consequently, she would be required to be placed on an appropriate band of hours for the coming six months, which would coincide with the low season. However, during that period the work may not be available and the employer may not have enough work to justify giving that employee 35 hours of work. The likelihood is that either that employee or other employees would have to be let go to satisfy the 35 hour look-back period. That is not something any of us want.

The purpose of this measure is to be able to establish in principle the actual hours that people are working and for it to be reflected in their contract. The purpose is not to manipulate it or make it better for employees and worse for employers or better for employers and worse for employees. It is simply to reflect the reality of what people are working under their contracts. It is for that reason I cannot accept amendment No. 11.

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