Written answers

Tuesday, 28 March 2006

Department of Enterprise, Trade and Employment

Direct Selling Agencies

11:00 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 257: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the concerns expressed regarding the treatment of commercial agents employed by direct selling agencies, such as those in the cosmetics business; if his attention has been drawn to the fact that in many such cases those engaged have no security and no rights in regard to terms or conditions; his views on introducing legislation to provide statutory rights for such people in view of the growth of direct selling; and if he will make a statement on the matter. [11621/06]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 258: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to concerns expressed regarding the accuracy of advertisements used by direct selling companies to recruit agents; his views on the introduction of regulations to ensure the accuracy of such advertisements and to ensure that applicants for such positions are fully aware of terms and conditions; and if he will make a statement on the matter. [11622/06]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 257 and 258 together.

There is already legislation in the area of self-employed commercial agents. In 1986 the European Community adopted Council Directive 86/653 EEC of 18/12/86 obliging member states to give legal protection to self-employed commercial agents. This directive was transposed into Irish law by two statutory instruments, SI No. 33 of 1994 and SI No.31 of 1997. Under the legislation a commercial agent is a self-employed intermediary who has continuing authority to negotiate the sale or purchase of goods on behalf of another person, the principal. The directive and the two statutory instruments contain a wide variety of requirements dealing with the regulation and protection of commercial agents and their principals and their respective rights and obligations. The legislation primarily governs the remuneration structure and contains details of commission calculations as well as minimum notice requirements to terminate the contract between the agent and the principal.

My officials have checked with the various relevant enforcement agencies of my Department and they have not received complaints in the nature described by the Deputy. However, if the Deputy has additional information that he can supply we can consider the matter further. The Deputy will be aware that commercial agents are not employees and, as such, are not covered by employment rights legislation.

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