Written answers

Thursday, 28 February 2008

Department of Enterprise, Trade and Employment

National Minimum Wage

5:00 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 22: To ask the Minister for Enterprise, Trade and Employment his views on the fact that, of 296 breaches of the minimum pay legislation, detected during 2006 and 2007, prosecutions were initiated in just a single case; if he is satisfied that the legislation is being properly enforced; and if he will make a statement on the matter. [8341/08]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I am satisfied that sufficient priority is being given to the enforcement of the National Minimum Wage Act, 2000 insofar as the inspection activities of the National Employment Rights Authority (NERA) are concerned. This is demonstrated by the number of National Minimum Wage Act inspections undertaken by NERA, amounting to 2,002 and 1,942 in 2006 and 2007 respectively, and by the breach detection rate which averaged almost 8% over the period 2006 and 2007.

NERA reserves the right to initiate prosecutions in all cases where breaches of employment legislation within its remit are detected. However, NERA's primary focus in such cases is to seek compliance and rectification of any breaches identified, including redress for the employees concerned and payment of any arrears due to those employees. In this regard, NERA recovered, in 2007, almost €125,000 in arrears due to employees arising from breaches of the National Minimum Wage Act. The Deputy will be aware that NERA recovered almost €2.5 million in arrears in total in 2007 arising from breaches of this and other employment rights legislation.

Decisions in relation to the initiation of proceedings must have regard, among other matters, to the nature and circumstances of the breach, the employer's engagement insofar as rectifying the breaches and paying any arrears due are concerned, legal advice and the value from a public interest and value for money perspective, in such circumstances, of pursuing the matter through the judicial system. It should be noted that in the majority of cases employers are extremely cooperative in relation to rectifying breaches of employment law brought to their attention by NERA inspectors and paying any associated arrears. NERA will pursue breaches through the Courts in circumstances where such cooperation and full restitution are not forthcoming within a reasonable period.

The Deputy should be aware that Rights Commissioners of the Labour Relations Commission also hear complaints concerning breaches of the National Minimum Wage Act 2000.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 23: To ask the Minister for Enterprise, Trade and Employment if his Department has made an assessment of the outcome for workers in the hotel sector and in the 16 other sectors covered by the joint labour committees of the High Court case taken by the Irish Hotels Federation challenging the fixing by the Labour Court of minimum wage levels for certain industries. [8254/08]

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 31: To ask the Minister for Enterprise, Trade and Employment the implications for the operation of the joint labour committees, of the decision of the High Court to quashing the order made by the joint committee for the hotel industry fixing minimum wage levels for workers in that sector; and if he will make a statement on the matter. [8323/08]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I propose to take Questions Nos. 23 and 31 together.

I have noted the decision reached in the High Court on 7 February to quash the Employment Regulation Order, relating to minimum remuneration of workers, made by the Labour Court on foot of proposals from the Hotel Joint Labour Committee on 5 November 2007, and to remit the matter back to the Joint Labour Committee.

The implications of the issues raised during the course of the action will require consideration by the Hotels Joint Labour Committee, the Labour Court and by my Department. In this regard, I understand that a meeting of the Committee has been sought by the workers' representative side. Consideration of the issue, including legislative changes that may be necessary to protect the integrity of the JLC system, is also underway in my Department.

I would like to assure Deputies of the government's ongoing commitment to ensuring that there are adequate systems and processes in place to underpin employment standards.

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