Consultation on zero-hours contracts
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Consultation on zero-hours contracts

19/11/2015

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Zero-hours contracts have been the subject of much debate this year (see our earlier article Zero-Hour Contracts - Zero Hassle?).  In February 2015, the University of Limerick was appointed by the Department of Jobs, Enterprise and Innovation to undertake a study of zero-hour and low hour contracts.  The resulting report was published on 3 November 2015 (see the Full Report).The report makes a number of key recommendations which, if adopted, would substantially change the ...

Zero-hours contracts have been the subject of much debate this year (see our earlier article Zero-Hour Contracts - Zero Hassle?).  In February 2015, the University of Limerick was appointed by the Department of Jobs, Enterprise and Innovation to undertake a study of zero-hour and low hour contracts.  The resulting report was published on 3 November 2015 (see the Full Report).

The report makes a number of key recommendations which, if adopted, would substantially change the current legal position, including the following:

  • Employees would be entitled to a statement of working hours which are “a true reflection” of those required.
  • Where employees do not have guaranteed hours, the average hours worked over the last 6 months would be taken to be the minimum number of hours required under the contract of employment.
  • Where employees have both a minimum number of guaranteed hours and “If and When hours”, the average hours worked over the last 6 months would be taken to be the minimum number of hours required under the contract of employment.
  • Employees must be given 72 hours’ notice of any request to undertake work (unless there are exceptional and unforeseeable circumstances).  If less than 72 hours’ notice is provided, employers would have to pay 150% of the normal rate.
  • Similarly, employers may not cancel agreed hours less than 72 hours prior to the scheduled start time.  If less notice is provided, the employee would be entitled to pay for the relevant shift.
  • Employees should be required to work a minimum of 3 continuous working hours.  If an employee is scheduled for less than 3 hours, he/she would be entitled to 3 hours’ pay at the normal rate.
  • Sectoral collective agreements agreed by representative bodies would be permitted to opt out of some of the above provisions.

A consultation period has now commenced and will run until 4 January 2016.  The purpose of this period is to provide stakeholders an opportunity to make submissions on the key findings and recommendations of the report and a Consultation Document has been published for interested parties. Following conclusion of the consultation process, Minister Nash has indicated that he intends to bring his own recommendations to Cabinet in early 2016.