Written answers

Tuesday, 12 December 2006

Department of Enterprise, Trade and Employment

National Minimum Wage

11:00 am

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 362: To ask the Minister for Enterprise, Trade and Employment the number of inspections that have taken place in the retail sector to ensure that established pay rates are not being undermined by employers recruiting foreign staff to work at below the agreed rates; the number of cases where evidence was found that workers were not receiving their full entitlements; and if he will make a statement on the matter. [42273/06]

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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The Labour Inspectorate of the Department is responsible for monitoring certain employment conditions for all categories of workers in Ireland, including migrant workers. The Inspectorate operates without any differentiation with regard to worker nationality as statutory employment rights and protections apply to migrant workers in exactly the same manner as they do to native Irish workers. Inspectors pursue allegations of worker mistreatment and when evidence of non-compliance with the relevant employment rights legislation is found, the Inspectorate seeks redress for the individual/s concerned and, if appropriate, a prosecution is initiated.

In many instances the wages and employment conditions of workers employed in the retail sector are governed by Employment Regulation Orders or Registered Employment Agreements, which are enforced by the Labour Inspectorate.

The Retail Grocery and Allied Trades Joint Labour Committee sets down the rates of remuneration and conditions of employment by way of Employment Regulation Orders. Persons whose employment is covered by these Employment Regulation Orders are entitled to the terms and conditions therein. The number of inspections undertaken by the Labour Inspectorate under the Order in 2006 was 44. Breaches were detected in the case of 20 inspections. Inspections undertaken under the Order in 2005 amounted to 84 and breaches were detected in 37 instances.

The Registered Employment Agreement (Dublin and Dún Laoghaire) Drapery, Footwear and Allied Trades sets down the rates of remuneration and conditions of employment of workers covered by the Agreement. The Labour Inspectorate undertook five inspections under the Registered Employment Agreement in 2006 and breaches were detected in the case of 4 inspections. Inspections undertaken under the Registered Employment Agreement in 2005 amounted to 9 and breaches were detected in 2 instances.

In addition to the inspections undertaken under the Retail Grocery and Allied Trades Employment Regulation Order and the Registered Employment Agreement (Dublin and Dún Laoghaire) Drapery, Footwear and Allied Trades, a substantial number of inspections were undertaken in retail outlets whose employees are covered by the National Minimum Wage Act 2000. In 2006 the Labour Inspectorate undertook 1,015 inspections under the Act. Breaches were detected in the case of 45 inspections. Inspections undertaken under the Act in 2005 amounted to 481 and breaches were detected in 92 instances.

Finally, the Social Partnership Agreement "Towards 2016" provides for the establishment of an Office of the Director for Employment Rights Compliance (ODERC) which, in addition to the provision of employment rights information and the prosecution of offences, will also have responsibility for the Labour Inspectorate.

The number of Labour Inspectors under this Office will be progressively increased from 31 to 90 by end-2007 while existing arrangements in relation to the investigation of particular employments in relation to employment rights and compliance will be strengthened. The revised arrangements will also provide that, in certain cases, the ODERC may take cases to the Courts with a view to securing convictions by way of prosecutions for summary or indictable offences, notwithstanding any redress actions that may be taken. Where the employer fails to make good the amounts of money which are owed to the employee under employment rights legislation redress will be obtained via the Rights Commissioner Service.

Provision will also be made for improved record keeping in order to protect workers' employment rights and to ensure consistency between statutory employment records and record keeping requirements for employers in relation to, for example, taxation and social welfare. Employers will have clear responsibilities in relation to the maintenance and production of up-to-date statutory records.

In addition, the ODERC will be empowered to join with the Department of Social and Family Affairs and the Revenue Commissioners to work together in the Joint Investigation Units.

"Towards 2016" also provides for the deployment of the Labour Inspectorate on a regionalised basis. Proposals in this regard are being prepared at present and will be finalised following the appointment of the Director of the Office for Employment Rights Compliance.

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