The Industrial Relations (Amendment) Act 2015

The Industrial Relations (Amendment) Act 2015 was enacted on 22 July 2015 and came into force on 1 August 2015.

The Act makes provision for three main areas, namely:

it creates a new regime for registered employment agreements ("REAs"); it makes provision for sectoral employment orders ("SEOs"); and it adjusts the Labour Court's jurisdiction, created by the Industrial Relations (Amendment) Act 2001, to make legally binding determinations affecting employers who do not engage in collective bargaining with trade unions. 1. REGISTERED EMPLOYMENT AGREEMENTS

Why was it necessary to legislate for REAs?

The previous statutory regime governing REAs (Part III of the Industrial Relations Act 1946) was declared to be unconstitutional by the Supreme Court in 20131 and the 2015 Act accordingly creates an entirely new regime for REAs.

What are REAs?

An employment agreement ("EA") is an agreement made between a trade union(s) of workers and an employer(s) (or a trade union(s) of employers), relating to the remuneration or conditions of employment of workers of any class, type or group, that is binding only on the parties to the agreement. An EA becomes an REA when it is registered in the Labour Court's Register of Employment Agreements. 2

In what circumstances can an EA be registered?

Any party to an EA may apply to the Labour Court to have the EA registered, and the Labour Court must register the EA it if the statutory conditions are satisfied. Those conditions3 are:

all the union(s) and the employer(s) party to the EA must agree that the EA should be registered; the EA must be expressed to apply to all the workers of a particular class, type or group and their employers party to the EA; the trade union(s) party to the EA must be substantially representative of the workers in the class, type or group to which the EA is expressed to apply; it must be normal and desirable practice or expedient to have a separate REA for these workers in that class, type or group; registration of the EA must be likely to promote harmonious relations between the workers and their employer(s) and the avoidance of industrial unrest; the EA must provide that, if a trade dispute occurs between the workers and the employer(s) party to the EA, industrial action or a lock-out shall not take place until the dispute has been submitted for settlement by negotiation in the manner specified in the EA; the EA must specify the circumstances in which a party or parties may terminate the EA; and the EA must be in a form suitable for registration. Once registered, is an REA permanent?

The REA itself must specify the circumstances in which a party may terminate it. In addition, a party to an REA may apply to the Labour Court to have it cancelled or have its terms varied, either by agreement of all parties or, failing agreement, following a dispute resolution process and the involvement of the WRC. 4

How is an REA to be interpreted?

A party to an REA may apply to the Labour Court for an interpretation of the REA or its application to any person and the civil courts must have regard to any such interpretation. If a dispute regarding an REA comes before a civil court, it may refer an REA to the Labour Court for interpretation. 5

What is the effect of REAs on employers or workers who are not party to them?

In 2013, the previous REA regime (contained in Part III of the Industrial Relations Act 1946) was struck down by the Supreme Court in McGowan & Ors v Labour Court & Anor6 because an REA under the 1946 Act could bind employers who were not party to it. Accordingly, the REA regime represented an impermissible exercise of the legislative power of the State which is reserved to the Oireachtas. Under the 2015 Act, REAs will be legally binding only on employers and unions who are party to them and on relevant employees of those employers. If there is a desire to bind non-party employers the persons concerned will need to seek an SEO.

What is the effect of REAs on those who are party to them?

Any REA will apply to every employer of the class, type or group to which it is expressed to apply and to their workers party to the REA. If the contract of employment of an employee to whom an REA relates provides for a lower rate of remuneration, or less favourable conditions than those set out in that REA, the more favourable REA provisions will be substituted for the equivalent provisions in the contract of employment. 7

How are REA's enforced?

The Act requires employers to whom an REA applies, to keep employment records at the place of work to show compliance with the REA. These records must be kept for at least 3 years from the date of their making and an employer who fails to comply with this provision shall be guilty of an offence. A worker in respect of whom a claimed infringement took place may present a complaint to a WRC Adjudication Officer, from whose decision there is an appeal to the...