Written answers

Thursday, 12 February 2015

Department of Jobs, Enterprise and Innovation

Employment Rights

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

101. To ask the Minister for Jobs, Enterprise and Innovation to set out his views on whether the use of zero-hour contracts is causing great uncertainty and a lack of stability for many workers; his further views on whether this growing trend should not be encouraged and that the current rate of 25% of compensation for weekly staff not required to work while on zero-hour contracts should be increased to a higher investment to stop companies investing with the aim of taking advantage of workers by utilising the zero-hour contract facility; and if he will make a statement on the matter. [6449/15]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In accordance with the Statement of Government priorities, Minister Nash has commissioned a study into the prevalence of zero hour and low hour contracts and the impact of such contracts on employees. Earlier this week, I announced the appointment of the University of Limerick (UL) to carry out the study. The appointment of UL follows a competitive tendering process. The key objectives of the study are:

- To fill the gap that currently exists in terms of the hard data and information that is available concerning the prevalence of zero hour and low hour contracts in the Irish economy and the manner of their use.

- To assess the impact of zero hour and low hour contracts on employees.

- To enable the Minister to make any evidence-basedpolicy recommendations to Government considered necessary on foot of the study.

All sectors of the economy, both public and private, will come within the scope of the study, including the retail, hospitality, education and health sectors in particular. The study will examine how zero and low hour contracts operate in practice and how they impact on employees. It will assess the advantages and disadvantages from the perspective of employer and employee and assess the current employment rights legislation as it applies to employees on such contracts. The study will also consider recent developments in other jurisdictions, including the UK in particular.

Unlike the position in the UK, Section 18 of the Organisation of Working Time Act 1997 provides that where employees on zero hour contracts suffer a loss by not being given the hours they were requested to work or be available for work, they can be compensated for 25% of the time or 15 hours, whichever is less. There is no equivalent provision in the UK, where employees on zero hours contracts are only paid for time spent working and if they are not given any hours by their employer they receive no compensation.

It is expected that a wide range of stakeholders will be canvassed to contribute to the study, including employers, trade unions, relevant Government Departments and relevant state bodies. I expect the study to be completed within six months of commencement.

Comments

No comments

Log in or join to post a public comment.