National Minimum Wage (Low Pay Commission) Act 2015

PART 1 Preliminary and General

1. Short title, collective citation and construction

1. (1) This Act may be cited as the National Minimum Wage (Low Pay Commission) Act 2015.

(2) This Act (other than Part 3) and the National Minimum Wage Act 2000 may be cited together as the National Minimum Wage Acts 2000 and 2015 and shall be construed together as one Act.

2. Definition

2. In this Act “Principal Act” means the National Minimum Wage Act 2000.

3. Repeals

3. Sections 11, 12 and 13 of the Principal Act are repealed.

PART 2 Low Pay Commission

4. Amendment of section 2 of Principal Act

4. Section 2 of the Principal Act is amended, in subsection (1), by—

(a) the insertion of the following definitions:

“ ‘Act of 2015’ means the National Minimum Wage (Low Pay Commission) Act 2015;

‘Commission’ means the Low Pay Commission established under section 10A (inserted by section 5 of the Act of 2015);”,

and

(b) the substitution of the following definition for the definition of “national minimum hourly rate of pay”:

“ ‘national minimum hourly rate of pay’ means the rate of pay declared by order of the Minister under section 10D(inserted by section 8 of the Act of 2015);”.

5. Establishment of Low Pay Commission

5. The Principal Act is amended by the insertion of the followingsection after section 10 but in Part 3:

“10A. (1) There is hereby established a body to be known in the Irish language as An Coimisiún um Pá Íseal or, in the English language, as the Low Pay Commission to perform the functions conferred on it by section 10C (inserted by section 7 of 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 by section 10 of the Act of 2015) shall apply to the Commission.”.

6. Duty of Commission

6. The Principal Act is amended by the insertion of the following section after section 10A:

“10B. The Commission in the performance of the functions assigned to itby section 10C shall 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 isappropriate, is adjusted incrementally, and

(d) over time, is progressively increased,

without creating significant adverse consequences for employment or competitiveness.”.

7. Functions of Commission

7. The Principal Act is amended by the insertion of the following section after section 10B:

“10C. (1) Without prejudice to the generality of section 10B, the Commission shall once each year—

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

(b) make a recommendation to the Minister respecting the national minimum hourly rate of pay.

(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 under subsection (1)(b), the Commission shall have regard to—

(a) changes in earnings during the relevant period,

(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 under section 10D (inserted by section 8 of the Act of 2015),

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

(f) the need for job creation, and

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

(i) levels of employment and unemployment,

(ii) the cost of living, and

(iii) national competitiveness.

(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 under paragraph (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 under paragraph (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 under section 10D on low pay, income distribution and employment costs.

(6) When preparing a report under this section the Commission shall consult with such persons, including representatives of employers and employees, as it thinks appropriate.

(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.

(9) In this section ‘relevant period’ means—

(a) in the case of the first report furnished under subsection (2)(b), the period since the most recent making of an order under section 11 of the Principal Act, or

(b) in the case of a second or subsequent report furnished under subsection (2)(b), the period since the most recent making of an order under section 10D (inserted by section 8 of the Act of 2015).”.

8. National minimum hourly rate of pay

8. The Principal Act is amended by the insertion of the following section after section 10C:

“10D. (1) Within 3 months of the date of receipt of a recommendation and report submitted to him or her under section 10C(2) and having considered the report and recommendation and having had regard to section 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.

(2) Where the Minister—

(a) by order declares a national minimum hourly rate of pay in terms other than terms recommended by the Commission, or

(b) declines to make an order declaring a national minimum hourly rate of pay,

the Minister shall prepare and lay before both Houses of the Oireachtas a statement of his or her reasons for so doing.

(3) The national minimum hourly rate of pay declared by order under this section may include an allowance in respect of board and lodgings, board only or lodgings only at such rates as are specified in the order.

(4) Where the Commission fails to make a recommendation or submit the report required in accordance with section 10C(2)(b) the Minister may, by order, having had regard to section 10C(3), declare a national minimum hourly rate of pay.”.

9. Funding and resources

9. The Principal Act is amen ded by the insertion of the following section after section10D:

“10E. (1) The Minister shall advance to the Commission out of moneys provided by the Oireachtas such amount or amounts as the Minister may, with the consent of the Minister for Public Expenditure and Reform, determine for the purposes of expenditure by the Commission in the performance of its functions.

(2) The Minister shall make available to the Commission such officers of the Minister and reasonable facilities and services as the Minister, after consultation with the Commission, may determine.”.

10. Amendment of Principal Act

10. The Principal Act is amended—

(a) in section 2—

(i) in subsection (1), in the definition of “pay”, by the substitution of “Schedule 1” for “the Schedule”, and

(ii) in subsection (3), by the substitution of “a Schedule” for “the Schedule” in each place where it occurs,

(b) in section 19—

(i) by the substitution of “Schedule 1” for “Schedule” in each place where it occurs, and

(ii) in subsection (5), by the substitution of “section 10D” for “section 11”,

(c) in section 23(4) (a), by the substitution of “Schedule 1” for “the Schedule”,

(d) in the Schedule, by the substitution of “Schedule 1” for “Schedule” in the first place it occurs, and

(e) by the insertion of the text set out in the Schedule after Schedule 1 (amended by paragraph (d)).

PART 3 Workplace Relations

11. Definition

11. In this Part—

“Act of 2015” means the Workplace Relations Act 2015;

“Minister” means the Minister for Jobs, Enterprise and Innovation.

12. Amendment of Industrial Relations Act 1946

12. (1) The Industrial Relations Act 1946 is amended by the insertion, in section 21, of the following subsection:

“(5) A document purporting to be signed by the chairman or the registrar of the Court stating that—

(a) a person named in the document was, by summons under subsection (1), required to attend before the Court on a day and at a time and place specified in the document, and

(b) a sitting of the Court was held on that day and at that time and place,

shall, in proceedings for an offence under this section, be evidence of the matters so stated unless the contrary is shown.”.

(2) This section shall come into operation on the commencement of section 74 of the Act of 2015.

13. Amendment of Redundancy Payments Act 1967

13. (1) The Redundancy Payments Act 1967is amended by the insertion of the following section:

“Appeal to Labour Court from decision of adjudication officer

39A. Section 44 of the Act of 2015 shall apply to a decision of an adjudication officer given in relation to an appeal under subsection (15), or a question referred to the Director General under subsection (16), of section 39 of this Act as it applies to a decision of an adjudication officer under section 41 of that Act, subject to the following modifications:

(a) the substitution of the following subsection for subsection (1):

‘(1) (a) A party to an appeal under subsection (15), or proceedings in relation to a question referred to the Director General under subsection (16), of section 39 of the Act of 1967 may appeal a decision of an adjudication officer given in that appeal or those proceedings to the Labour Court and, where the party does so, the Labour Court shall—

(i) give the parties to the second-mentioned appeal an opportunity to be heard by it and to present to it any evidence relevant to the appeal,

(ii) make a decision in relation to the appeal affirming, varying or setting aside the decision of the adjudication officer to which the appeal relates, and

(iii) give the parties to the appeal a copy of that decision in writing.

(b) The Labour Court shall have power to make any decision in an appeal under this paragraph that an adjudication officer has power to make on the hearing of an appeal under subsection (15), or a question referred to the Director General under subsection (16), of section 39 of the Act of 1967.’;

and

(b) any other necessary modifications.”.

(2) This section shall come into operation on the commencement of section 76 of the Act of 2015.

14. Amendment of Unfair Dismissals Act 1977

14. (1) Section 8 of the Unfair Dismissals Act 1977 is amended—

(a) by the substitution of the following subsection for subsection (1) :

“(1) (a) A claim by an employee against an employer for redress under this Act for unfair dismissal may be referred by the employee to the Director General and, where such a claim is so referred, the Director General shall, subject to section 39 of the Act of 2015, refer the claim to an adjudication officer for adjudication by that officer.

(b) Section 39 of the Act of 2015 shall apply to a claim for redress referred to the Director General under paragraph (a) as it applies to a complaint presented or dispute referred to the Director General under section 41 of that Act, subject to the modification that references, in the said section 39, to a complaint or dispute shall be construed as references to a claim for redress so referred.

(c) An adjudication officer to whom a claim for redress is referred under this section shall—

(i) inquire into the claim,

(ii) give the parties to the claim an opportunity to be heard by the adjudication officer and to present to the adjudication officer any evidence relevant to the claim,

(iii) make a decision in relation to the claim consisting of an award of redress in accordance with section 7 or the dismissal of the claim, and

(iv) give the parties to the claim a copy of that decision in writing.”,

(b) by the substitution of the following subsection for subsection (1A) (inserted by section 7 of the Unfair Dismissals (Amendment) Act 1993):

“(1A) A decision of an adjudication officer under subsection (1) consisting of an award of redress in accordance with section 7 shall include a statement of the reasons for the award of such redress and the reasons for the adjudication officer’s deciding not to award other redress under that section.”,

(c) by the insertion of the following subsection:

“(1B) Subsection (14) of section 41 of the Act of 2015 applies to a decision of an adjudication officer under subsection (1) as it applies to a decision of an adjudication officer under that section subject to the modification that the words ‘subsection (1) of section 8 of the Act of 1977’ shall be substituted for the words ‘this section’.”,

(d) in subsection (2), by the substitution of—

(i) the words “regulations under subsection (17) of section 41 of the Act of 2015” for the words “regulations under section 17 of this Act made for the purposes of subsection (8) of this section”, and

(ii) the following paragraph for paragraph (b) :

“(b) within such period not exceeding 12 months from the date of the relevant dismissal as the adjudication officer considers appropriate, in circumstances where the adjudication officer is satisfied that the giving of the notice within the period referred to in paragraph (a) was prevented due to reasonable cause,”,

(e) by the deletion of subsections (3), (4), (5), (8) and (9), and

(f) by the substitution of the following subsection for subsection (10):

“(10) (a) A dispute relating to a dismissal shall not be referred to an adjudication officer under the Industrial Relations Acts 1946 to 2012 if, in relation to the dismissal—

(i) a recommendation has been made by a rights commissioner under this Act, or a hearing by the Tribunal under this Act has commenced,

(ii) a decision (other than a decision consisting of a dismissal of the claim concerned) has been made by an adjudication officer under this Act,

(iii) a decision has been made by the Labour Court in accordance with subsection (2) of section 8A affirming a decision (consisting of a dismissal of the claim concerned) of an adjudication officer under this Act, or

(iv) a decision has been made by the Labour Court in accordance with the said subsection (2) —

(I) setting aside a decision to which subparagraph (ii) applies, and

(II) not awarding any redress under section 7.

(b) An employee shall not be entitled to redress under this Act in respect of a dismissal if, in relation to the dismissal—

(i) a recommendation has been made by a rights commissioner or an adjudication officer under the Industrial Relations Acts 1946 to 2012, or

(ii) a hearing by the Labour Court under those Acts has commenced.”.

(2) Section 8A (inserted by paragraph (h) of subsection (1) of section 80 of the Act of 2015) of the Unfair Dismissals Act 1977 is amended by the substitution of the following subsection for subsection (2) :

“(2) Section 44 of the Workplace Relations Act 2015 shall apply to a decision of an adjudication officer given in respect of a claim for redress under this Act by an employee as it applies to a decision of an adjudication officer given in proceedings under section 41 of that Act, subject to the following modifications:

(a) the substitution of the following subsection for subsection (1) :

‘(1) (a) A party to a claim for redress under the Act of 1977 may appeal a decision of an adjudication officer given in relation to that claim to the Labour Court and, where the party does so, the Labour Court shall—

(i) give the parties to the appeal an opportunity to be heard by it and to present to it any evidence relevant to the appeal,

(ii) make a decision in relation to the appeal affirming, varying or setting aside the decision of the adjudication officer to which the appeal relates, and

(iii) give the parties to the appeal a copy of that decision in writing.

(b) A decision of the Labour Court under paragraph (a), may include an award of redress under section 7 of the Act of 1977.’;

and

(b) any other necessary modifications.”.

(3) Section 11 (inserted by paragraph (k) of subsection (1) of section 80 of the Act of 2015) is amended, in subsection (2), by the insertion of “or the Companies Act 2014” after “the Companies Acts”.

(4) This section shall come into operation on the commencement of section 80 of the Act of 2015.

15. Amendment of Protection of Employees (Employers’ Insolvency) Act 1984

15. (1) The Protection of Employees (Employers’ Insolvency) Act 1984 is amended by the insertion of the following section:

“Appeal to Labour Court from declaration of adjudication officer under section 9

9A. Section 44 of the Act of 2015 shall apply to a declaration of an adjudication officer given in relation to a complaint under section 9 as it applies to a decision of an adjudication officer given in proceedings under section 41 of that Act, subject to the following modifications:

(a) the substitution of the following subsection for subsection (1):

‘ (1) A party to proceedings in relation to a complaint under section 9 of the Act of 1984 may appeal a declaration of an adjudication officer given in those proceedings to the Labour Court and, where the party does so, the Labour Court shall—