Minister Killeen Announces Publication of a Guide to the Employees (Provision of Information and Consultation) Act 2006

“Information and Consultation Act to apply to undertakings with at least 100 employees from 23 March 2007”- Killeen

Mr Tony Killeen TD, Minister for Labour Affairs at the Department of Enterprise, Trade and Employment, today (Thursday, 22^nd March 2007) drew attention to the fact that companies with at least 100 employees will fall within the scope of the Employees (Provision of Information and Consultation) Act 2006 from 23^rd March 2007. The Minister announced the publication of an Explanatory Guide for employers and employees on the Act. The Act came into operation on the 24^th July 2006 (S.I. No. 382 of 2006) and has applied to undertakings with at least 150 employees from 4^th September 2006 (S.I. No. 383 of 2006).

Announcing the publication of the Guide Minister Killeen said: “The Employees (Provision of Information and Consultation) Act 2006 sets the framework for a new era of effective, two-way information and consultation practices in undertakings. It establishes a general framework setting out minimum requirements for the right to information and consultation of employees. The purpose of the Guide is to provide general guidance on the Act to employees and employers in non-legal language. It sets out the provisions of the Act in a clear and user-friendly way”.

The aim of the Act is to ensure that information and consultation is provided by employers systematically so that employees are able to acquire an informed understanding of the challenges faced by the business. Improving the adaptability of Irish workplaces is vital to meeting the challenges created by the globalised economy. Timely information and meaningful consultation are fundamental in this regard. The Act respects Ireland’s voluntarist tradition of industrial relations and allows maximum flexibility to employers and employees to implement new procedures or continue with existing customised information and consultation arrangements.

“As the Act will apply to undertakings with 100 or more employees from 23 March 2007, I would recommend this Guide to all those employers and employees who will fall within its ambit from that date.”

The Explanatory Guide forms part of a wider dissemination strategy for the new Act. As well as a media campaign in September 2006 and the publication of this Guide, the Department is working, in conjunction with the Irish Congress of Trade Unions, the Irish Business and Employers Confederation and the National Centre for Partnership and Performance, to assist and support employers and employees through the Workplace Innovation Fund to grasp the opportunities offered by the new Act.

Work is also being carried out by the Labour Relations Commission, in conjunction with the social partners, on foot of a request by the Minister under Section 42(1) of the Industrial Relations Act 1990, to prepare a Code of Practice to assist employers and employees in implementing the provisions of the new legislation.

Copies of the Explanatory Guide are available on request from the Employment Rights Information Unit of the Department of Enterprise, Trade and Employment (Tel: (01) 6313131, Lo Call 1890 201615, email: erinfo@entemp.ie).

The Explanatory Guide is also available to download from the Department’s website by clicking on the link below:

http://www.entemp.ie/publications/employment/2007/guideprovinfoact2006.pdf

Copies of the Act are available to download from the Department’s website by clicking on the link below:

http://www.entemp.ie/publications/employment/2006/employees.pdf

S.I. No. 382 of 2006 is available to download from the Department’s website by clicking on the link below:

http://www.entemp.ie/publications/employment/2006/si382.pdf

S.I. No. 383 of 2006 is available to download from the Department’s website by clicking on the link below:

http://www.entemp.ie/publications/sis/2006/si383.pdf

Note to Editors

The Act provides for the establishment of a general framework setting out minimum requirements for the right to information and consultation of employees in undertakings with at least 50 employees. The Act will apply in accordance with the following timetable

• Undertakings with at least 150 employees from 4 September 2006

• Undertakings with at least 100 employees from 23 March 2007

• Undertakings with at least 50 employees from 23 March 2008

At present the information and consultation rights of employees in Ireland are limited to specific situations for example collective redundancies and transfers of undertakings. This new Act is without prejudice to those existing rights to information and consultation in Irish law as provided for by the Protection of Employment Act 1977, as amended, (collective redundancies); Transfer of Undertakings Regulations 2003; and the Transnational Information and Consultation of Employees Act 1996.

Employers have the option under the Act of putting in place agreements, on or before prescribed dates, known as ‘pre-existing agreements’ which can be tailor-made to suit the culture and circumstances of their own company. Alternatively, the Act gives employees the right to request that an employer sets up an information and consultation procedure; once 10% of employees (subject to a minimum of 15 and a maximum of 100) make such a request, an employer must enter into negotiations to agree a procedure with employees. A third option is provided in the ‘Standard Rules’ of the Act, which involve the setting up an Information and Consultation Forum. This Forum comprises elected employee representatives.

Under the Standard Rules, employers are obliged to provide information and consultation on issues such as the probable development of the undertaking’s activities and economic situation; the structure and probable development of employment within the undertaking and any anticipatory measures envisaged; any decisions likely to lead to substantial changes in work organisation or contractual relations. Information must be given at such time, in such fashion and with such content as are appropriate to enable, in particular, employees’ representatives to conduct an adequate study and, where necessary, prepare for consultation.

The Act provides for the Labour Court to investigate disputes that arise under the legislation and provides for the enforcement of Labour Court determinations by the Circuit Court. It also provides strong protections for employees’ representatives in the performance of their duties under the Act.

The legislation provides for penalties of up to €3,000 or imprisonment for a term not exceeding 6 months or both on summary conviction for offences under the Bill and on conviction on indictment to a fine not exceeding €30,000 or imprisonment for a term not exceeding 3 years or both.

ENDS