The Minister for Business and Employment, Gerald Nash TD, announced this week that good progress is being made on the drafting new legislation to replace the Registered Employment Agreement system (REAs).
This may be met with apprehension by employers as many were glad to see the back of such agreements when they were abolished in May 2013. The REAs had a massive impact on employers during the recession by setting minimum wage levels for staff, which were seen by some as being far too high and unfeasible for an employer to sustain during such tough times.
The new legislation will ensure that an order will only come into place once the Minister has approved a recommendation made by the Labour Court who will follow the guidelines set out in the new legislation. It will also allow firms in financial difficulties to apply for a temporary derogation from the obligations set out in an order and enforcement and compliance measures will be put in place consistent with the new Workplace Relations Bill. Hopefully these new provisions will put employers’ minds at ease as well as implementing a fair and transparent system for all parties.
For now we will await the legislation but when it comes into play, to ensure compliance the required industries must ensure that their employment documentation is updated to reflect the mandatory terms and conditions employers will be obliged to adhere to.
