National Minimum Wage Act 2000

PART I Preliminary

1. Short title and commencement.

1.—(1) This Act may be cited as the National Minimum Wage Act, 2000

(2) This Act shall come into operation on such day or days as, by order or orders made by the Minister under this section, may be fixed therefor, either generally or with reference to a particular purpose or provision, and different days may be so fixed for different purposes and different provisions.

2. Interpretation.

2.—(1) In this Act, unless the context otherwise requires—

“contract of employment” means—

(a) a contract of service or apprenticeship, or

(b) any other contract whereby an individual agrees with another person to do or perform personally any work or service for that person or a third person (whether or not the third person is a party to the contract),

whether the contract is express or implied and, if express, whether or not it is in writing;

F1["Act of 2015" means the National Minimum Wage (Low Pay Commission) Act 2015;

"Commission" means the Low Pay Commission established under section 10A (inserted bysection 5of the Act of 2015);]

F2["Directive" means Directive (EU) 2022/2041 of the European Parliament and of the Council of 19 October 2022^1on adequate minimum wages in the European Union;]

“employee” means a person of any age who has entered into, or works or has worked under, a contract of employment;

“employer”, in relation to an employee, means the person with whom the employee has entered into, or for whom the employee works or has worked under, a contract of employment, and includes a transferee of an undertaking referred to in section 46;

“functions” includes powers and duties;

“inspector” means a person appointed under section 33(1) as an inspector;

“Minister” means the Minister for Enterprise, Trade and Employment;

F3["national minimum hourly rate of pay" means the rate of pay declared by order of the Minister under section 10D (inserted bysection 8of the Act of 2015);]

“pay” means all amounts of payment, and any benefit-in-kind specified in Part 1 of F4[Schedule 1], made or allowed by an employer to an employee in respect of the employee’s employment;

“pay reference period”, in relation to an employee, means the period selected under section 10 by his or her employer;

“premium” means any amount in excess of basic pay payable to an employee in respect of his or her work;

“prescribed” means prescribed by regulations made under this Act by the Minister;

“working hours” has the meaning assigned to it by section 8.

(2) A reference in this Act to an employee of an employer shall be construed as a reference to an employee employed by that employer or to whom the employer is liable to pay wages and for that purpose a person holding office under, or in the service of, the State (including a civil servant within the meaning of the Civil Service Regulation Act, 1956) shall be deemed to be an employee employed by the State or the Government and an officer or servant of a local authority for the purposes of the Local Government Act, 1941, or of a harbour authority F5[or of a health board, or a member of staff of an education and training board], shall be deemed to be an employee employed by the respective authority F5[or board].

F2[(2A) A word or expression used insection 10Cthat is also used in the Directive has, unless the context otherwise requires, the same meaning in this Act as it has in that Directive.]

(3) In this Act—

(a) a reference to any other enactment shall, except to the extent that the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act,

(b) a reference to a section or Part is a reference to a section or Part of this Act, unless it is indicated that reference to some other enactment is intended,

(c) a reference to a subsection, paragraph or subparagraph is a reference to a subsection, paragraph or subparagraph of the provision in which the reference occurs, unless it is indicated that a reference to some other provision is intended, and

(d) a reference to F6[a Schedule] is a reference to F6[a Schedule] to this Act.

3. Regulations.

3.—(1) The Minister may make regulations prescribing such matters as may be prescribed under this Act by the Minister, and may make such other regulations as are necessary or expedient for the purpose of giving effect to this Act.

(2) Regulations made under this section may contain such incidental, supplementary and consequential provisions as appear to the Minister to be necessary.

4. Laying of orders and regulations before Houses of Oireachtas.

4.—Every order (other than an order made under section 1(2)) or regulation made by the Minister under this Act shall be laid before each House of the Oireachtas as soon as practicable after it is made and, if a resolution annulling the order or regulation is passed by either House within the next subsequent 21 days on which that House has sat after the order or regulation is laid before it, the order or regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under the order or regulation.

5. Non-application of Act.

5.—F7[(1)] This Act does not apply to the remuneration of a person who is—

(a) the spouseF8[, civil partner within the meaning of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010], father, mother, grandfather, grandmother, step-father, step-mother, son, daughter, step-son, step-daughter, grandson, grand-daughter, brother, sister, half-brother or half-sister of an employer, employed by the employer, or

(b) an apprentice within the meaning of or under the Industrial Training Act, 1967, or the Labour Services Act, 1987.

F9[(2) This Act does not apply to any non-commercial activity or work engaged in by prisoners under the supervision of the governor or person in charge of the prison concerned, including—

(a) any cleaning or kitchen work or other work relating to the operation of the prison;

(b) activity of an educational, training or work experience nature which is intended to prepare prisoners for their re-integration into society;

(c) the production of goods or services which are—

(i) sold or provided for the purpose of raising funds for charitable purposes or providing facilities for prisoners, or

(ii) disposed of or provided without charge or for a nominal charge.]

6. Expenses of Minister.

6.—Any expenses incurred by the Minister in the administration of this Act shall, to such extent as may be approved of by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

7. Provisions in agreement or legislation to pay less than national minimum hourly rate of pay are void.

7.—(1) A provision in a contract of employment (whether made or entered into before or after the commencement of this section) is void in so far as it purports to exclude or limit the operation of any provision of this Act.

(2) A contract or agreement or an enactment in force immediately before the commencement of this section that provides for the entitlement to pay for an employee less favourable than that to be provided in accordance with this Act is hereby modified to the extent necessary to provide that the employee’s entitlement after the commencement of this section shall be not less favourable than that to be provided in accordance with this Act.

(3) Nothing in this section shall prevent the inclusion in a contract of employment of a provision more favourable to an employee than an entitlement in accordance with this Act.

PART 2 Working Hours and Pay Reference Period

8. Working hours of employee for pay reference period.

8.—(1) For the purpose of determining under this Act whether an employee is being paid not less than the minimum hourly rate of pay to which he or she is entitled in accordance with this Act, but subject to section 9, “working hours”, in relation to an employee in a pay reference period, means—

(a) the hours (including a part of an hour) of work of the employee as determined in accordance with—

(i) his or her contract of employment,

(ii) any collective agreement that relates to the employee,

(iii) any Registered Employment Agreement that relates to the employee,

(iv) any Employment Regulation Order that relates to the employee,

(v) any statement provided by the employee’s employer to the employee in accordance with section 3(1) of the Terms of Employment (Information) Act, 1994,

(vi) any notification by the employee’s employer to the employee under section 17 of the Organisation of Working Time Act, 1997,

(vii) section 18 of the Organisation of Working Time Act, 1997, or

(viii) any other agreement made between the employee and his or her employer or their representatives that includes a provision in relation to hours of work,

or

(b) the total hours during which the employee carries out or performs the activities of his or her work at the employee’s place of employment or is required by his or her employer to be available for work there and is paid as if the employee is carrying out or performing the activities of his or her work,

whichever, in any case, is the greater number of hours of work.

(2) “Working hours” under this section shall include—

(a) overtime,

(b) time spent travelling on official business, and

(c) time spent on training or on a training course or course of study authorised by the employer, within the workplace or elsewhere, during normal working hours,

but shall not include—

(i) time spent on standby or on call at a place other than a place of work or training provided by or on behalf of the employer for whom the employee is on standby or on call,

F10[(ii) time spent absent from work on annual leave, sick leave, protective leave, adoptive leave, parental leave,F11[leave for medical care purposes, domestic violence leave,]carer’s leave under the Carer’s Leave Act, 2001, while laid-off, on strike or on "lock-out", or time for which the employee is paid in lieu of notice, or]

(iii) time spent on travelling between an employee’s place of residence and place of work and back.

9. Certain employees to provide record of working hours to employer.

9.—(1) Where an employee’s working hours are assessed as provided in section 8(1) (b) but are not normally controlled by his or her employer, the following shall apply:

(a) the employee shall keep a written record of his or her working hours during every day he or she is employed during a pay reference period;

(b) the employee shall give the record to his or her employer as soon as reasonably practicable after the end of the pay reference period;

(c) if the employee fails to comply with paragraph (b), the working hours of the employee shall be calculated in accordance with section 8(1) (a) and the employer shall notify the employee of that circumstance as soon as possible after the expiration of the period, but in any case not later than at the time of receipt by the employee of his or her pay for the working hours concerned.

(2) Subsection (1) does not apply to an employee whose average hourly rate of pay for the working hours concerned is likely to be not less than 150 per cent, or such other percentage as may be prescribed, of the national minimum hourly rate of pay.

(3) An employee who provides his or her employer with information in a record of working hours under this section that the employee knows to be false or misleading in a material respect shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding £1,500.

10. Pay reference period.

10.—An employer shall select as a pay reference period for the purposes of this Act a period not exceeding one calendar month.

PART 3 National Minimum Hourly Rate of Pay

10A. F12[Establishment of Low Pay Commission

10A.—(1) There is hereby established a body to be known in the Irish language as An Coimisiún um PáÍseal or, in the English language, as the Low Pay Commission to perform the functions conferred on it bysection 10C(inserted bysection 7of the Act of 2015).

(2) Subject to this Act, the Commission shall be independent in the performance of its functions.

(3) The provisions of Schedule 2 (inserted bysection 10of the Act of 2015) shall apply to the Commission.]

10B. F13[Duty of Commission

10B.—The Commission in the performance of the functions assigned to it bysection 10Cshall make recommendations to the Minister regarding the national minimum hourly rate of pay that—

(a) is designed to assist as many low paid workers as is reasonably practicable,

(b) is set at a rate that is both fair and sustainable,

(c) where adjustment is appropriate, is adjusted incrementally, and

(d) over time, is progressively increased,

without creating significant adverse consequences for employment or competitiveness.]

10C. F14[Functions of Commission

10C.—F15[(1) Without prejudice to the generality ofsection 10B, the Commission shall once each year, after consultation with and voluntary participation of the representatives of employers and employees—

(a) examine the national minimum hourly rate of pay, prescribed percentages and allowances, and

(b) make a recommendation to the Minister respecting the national minimum hourly rate of pay, prescribed percentages and allowances.]

(2) (a) A recommendation under this section shall be accompanied by a report on the matters considered when making the recommendation.

(b) A recommendation and report under this section shall be furnished to the Minister on or before the third Tuesday falling in July in the year to which the examination relates.

(3) When making a recommendation undersubsection (1)(b), the Commission shall have regard to—

F15[(a) changes in earnings during the relevant period, including their growth rate, general levels, and distribution,]

(b) changes in currency exchange rates during the relevant period,

(c) changes in income distribution during the relevant period,

(d) whether during the relevant period—

(i) unemployment has been increasing or decreasing,

(ii) employment has been increasing or decreasing, and

(iii) productivity has been increasing or decreasing,

both generally and in the sectors most affected by the making of an order undersection 10D(inserted bysection 8of the Act of 2015),

(e) international comparisons, particularly with Great Britain and Northern Ireland,

(f) the need for jobF15[creation,]

(g) the likely effect that any proposed order will have on—

(i) levels of employment and unemployment,

(ii) the cost of living, and

(iii) nationalF15[competitiveness,]

F16[(h) the purchasing power of the national minimum hourly rate of pay, taking into account the cost of living,

(i) long-term national productivity levels and developments, and

(j) indicative reference values used at international or national levels, such as 60% of the gross median wage, in order to guide the assessment of the adequacy of the national minimum hourly rate of pay.]

(4) (a) If so requested by the Minister, the Commission shall examine and report its views and recommendations on such matters, related generally to the functions of the Commission under this Act, as are specified by the Minister in that request.

(b) A request underparagraph (a)shall—

(i) be made not later than 2 months after this Act comes into operation and, thereafter, not later than 2 months after the beginning of each year,

(ii) be part of that year’s work programme of the Commission, and

(iii) specify the period within which the Commission shall report its views and recommendations to the Minister.

(c) The Minister may extend the period specified underparagraph (b)(iii).

(5) The Commission shall once every 3 years report generally on the operation of this Act and, in particular, on the impact of any orders made undersection 10Don low pay, income distribution and employment costs.

F17[(6) When preparing a report under this section the Commission shall consult with representatives of employers and employees, and such other persons it thinks appropriate, in a timely and effective manner and shall consult in particular on—

(a) the national minimum hourly rate of pay, prescribed percentages and allowances, and

(b) decisions relating to the collection of data and the carrying out of studies and analyses to provide information to authorities and other representatives involved in setting the national minimum hourly rate of pay.]

(7) The Minister shall cause a copy of any report or recommendation furnished to him or her in accordance with this section to be laid before each House of the Oireachtas not later than 3 months after the receipt of that report or recommendation.

(8) The Commission shall have all such powers as are necessary or expedient for the performance of its functions.

F17[(9) In this section—

"allowances" means an allowance declared by order in accordance withsection 10D(3);

"prescribed percentages" means a percentage prescribed by the Minister in accordance withsection 15(1);

"relevant period" means the period since the most recent making of an order undersection 10D(inserted by section 8 of the Act of 2015).]]

10CA. F18[Designation of consultative body and competent authority

10CA.—For the purposes of Article 5(6) of the Directive –

(a) the Commission is designated as the consultative body, and

(b) the Minister is designated as the competent authority which shall be advised by the consultative body on issues related to the national minimum hourly rate of pay, prescribed percentages and allowances.]

10D. F19[National minimum hourly rate of pay

10D.—(1) Within 3 months of the date of receipt of a recommendation and report submitted to him or her undersection 10C(2)and having considered the report and recommendation and having had regard tosection 10C(3), the Minister shall—

(a) by order declare a national minimum hourly rate of pay—

(i) in the terms recommended by the Commission, or

(ii) in other terms,

or

(b) decline to make such an order.