Ruth Coppinger (Dublin West, Socialist Party)
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21. To ask the Minister for Jobs, Enterprise and Innovation if the forthcoming Industrial Relations Bill, which reportedly will restore some sectoral registered employment agreements, will also outlaw bogus self-employment arrangements, which are rife in the construction sector; and if he will make a statement on the matter. [18410/15]

Gerald Nash (Louth, Labour)
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Cabinet approval was obtained on Wednesday last, May 6th, to publish the Industrial Relations (Amendment) Bill 2015. Publication of the Bill is expected this week with enactment to follow as expeditiously as possible thereafter.

The main purpose of the Bill is twofold: Firstly to provide (1) for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing remuneration and conditions of employment in individual enterprises, and (2) to provide for a new statutory framework for establishing minimum rates of remuneration terms and conditions of employment for a specified type, class or group of workers, particularly in the context of transnational provision of services and promoting harmonious relations between workers – in effect a framework to replace the former sectoral Registered Employment Agreements. The relevant provisions are contained in Part 2 of the Bill.

Secondly, to put in place the legislative amendments to the Industrial Relations Acts 2001 and 2004 required to give effect to the Programme for Government commitment to reform the current law on employees' right to engage in collective bargaining (the Industrial Relations (Amendment) Act 2001, so as to ensure compliance by the State with recent judgments of the European Court of Human Rights (ECHR). Furthermore, the Statement of Government Priorities 2014-2016 prioritised the enactment of the Collective Bargaining legislation as approved by Government. The relevant provisions are contained in Part 3 of the Bill.

Part 2 of the Bill provides for the reintroduction of a mechanism for the registration of employment agreements between an employer or employers and trade unions governing terms and conditions in individual enterprises. Such agreements will not be legally binding beyond the subscribing parties.

It also provides for a new statutory framework for establishing minimum rates of remuneration and other terms and conditions of employment for a specified type, class or group of – in effect a framework to replace the former sectoral REA system. In this context, the new framework proposes a mechanism whereby, in future, at the request, separately or jointly from organisations substantially representative of employers and/or of workers, the Labour Court can initiate a review of the pay and pension and sick pay entitlements of workers in a particular sector and, if it deems it appropriate, make a recommendation to the Minister on the matter. If the Minister is satisfied that the process provided for in the new legislation has been complied with by the Labour Court, he shall make the Order. Where such an order is made it will be binding across the sector to which it relates, and will be enforceable by the National Employment Rights Authority (NERA).

The Deputy will be aware that NERA inspectors carry out inspections of employers’ employment records and workplaces to determine compliance with employment law and employee’s statutory entitlements. In 2014, NERA carried out over 5,500 such inspections including construction sites. The policy of NERA is to seek voluntary compliance where breaches of employment law are detected. NERA work with employers and allow them every reasonable opportunity to rectify breaches. Allegations of non-compliance with employment rights legislation should be referred to NERA who investigate matters brought to their attention.

It is not within the remit of NERA to make determinations regarding the employment status of individuals vis-à-vis employment or self-employment. This is the responsibility of the Department of Social Protection who make decisions in relation to the insurability of employment and the appropriate class applicable where the matter is called into question and the Revenue Commissioners who also make decisions concerning the correct employment status of individuals. Where either of these bodies makes a determination on these issues NERA, in accordance with the Code of Practice for Determining Employment or Self-Employment Status of Individuals will generally accept their decisions on the issue. Finally, the matter can also be determined by the Courts.

Whether any a given situation is an abuse of the sub-contracting or RCT systems is a matter for the Revenue Commissioners.