Zero Hour Contracts is very much a hot topic at the moment, particularly in the UK where there use by major multinational companies has come under serious scrutiny. In a period in Ireland where employment alw seems to be constantly under the spotlight, it should come as no surprise to hear that Minister for Business and Employment Ged Nash intends to carry out a study into the prevalence of zero-hour and low-hour contracts in Ireland. What are Zero Hour Contracts? Zero-Hours contracts are used in circumstances where an employee is contractually obliged to be available to work for an employer in a week for:
- a certain number of hours; or
- as and when the employer requires them to do so; or
- both a certain number of hours and otherwise as and when the employer requires them to do so.
The difficulty that employees and their representatives have with such contracts is that while the employee is obliged to make themselves available for those hours, the employer is not obliged to provide the employee with any hours of work. Employees on zero-hours contracts are protected by the Organisation of Working Time Act 1997 but this does not apply to casual employment. What differentiates Zero-Hours contracts from regular casual workers contracts is that with Zero-Hours contracts the employee is entitled to receive remuneration if they do not work for the employer at all in a week or if they are only required to work less than the percentage of hours they are required to make themselves available for, and this percentage is less than 15 hours. Government Study into Zero Hours Contracts On 17 November 2014, Minister Ged Nash stated that he wants “to establish the extent of these work conditions, their impact on workers and then make recommendations for Government”. In this respect, the Minister has called for tenders to be submitted from interested parties who wish to carry out a study on behalf of the Government into the prevalence of zero hour and low hour contracts in Ireland and specifically on the impact of such contracts on employees. This study will also have a keen eye on developments in other jurisdictions and the the Minister’s announcement specifically reference developments in the UK. As such, one should keep a close eye on UK development s as it is likely that future reform will mirror what has taken place in the UK. 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 hours contracts” in the Irish economy and the manner of their use.
- To assess the impact of “zero hours contracts” on employees.
- To enable the Minister to make any evidence-based policy recommendations to Government considered necessary on foot of the study.
In pursuit of these key objectives, the study will:
- Collect and collate data/information through surveys or other appropriate means of the extent to which “zero hours contracts” are used by employers operating in the Irish economy.
- Collect and collate data/information about the manner in which “zero hours contracts” are used by employers operating in the Irish economy.
- Assess the main features of such contracts and how they operate in practice.
- Assess the advantages and disadvantages of such contracts from the perspective of both the employer and the employee.
- Assess the impact of such contracts on employees.
- Assess current employment rights legislation as it applies to employees on “zero hours contracts”.
- Consider recent developments in other jurisdictions, including the UK in particular.
- Repeat the above exercise for low hours contracts (8 hours per week or less).
Therefore, employers are encouraged to seek advice on zero hour contracts or part-time contracts before implementing same and, if you have any questions, please contact our 24 Hour Advice Service on 01 855 5050 where one of our experienced advisors will be more than happy to assist.
