Written answers

Tuesday, 12 October 2010

Department of Enterprise, Trade and Innovation

Employment Rights

9:00 am

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 531: To ask the Minister for Enterprise, Trade and Innovation if due diligence of private contractors' compliance with the Payment of Wages Act 1991 is undertaken by the Government when awarding public contracts; and if he will make a statement on the matter. [35952/10]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I understand from my colleague, the Minister for Finance, who has overall responsibility for the Government's public procurement procedures, the Government Construction Contracts Committee and the National Public Procurement Policy Unit (NPPPU), that this is a matter that would need to be taken up with the relevant Government Departments in respect of the various contracting authorities operating under their aegis.

I should point out, moreover, that there is a standard clause in the Public Works Contracts requiring a contractor to comply with all applicable law regarding the pay and conditions of employment provisions prescribed therein [sub-clause 5.3 in main contracts PW-CFI and PW-CF5], including the obligation to ensure that workers' wages are paid in accordance with the Payment of Wages Act 1991 and are never more than 1 month in arrears or unpaid. The contracting authority may seek information under sub-clause 5.3.3 for the purpose of ensuring that these obligations to persons engaged under work contracts have been properly discharged. This sub-clause also stipulates the remedies available to the contracting authority in the event of a failure by contractors to meet their responsibilities.

I should point out that if an employer or a trade union is aware of specific instances where public contracts have been awarded to firms that are not paying their workers their legal entitlements, the matter can be investigated through NERA, the Labour Court under the Industrial Relations Acts or the relevant public authority that awarded the contract in the first instance.

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