Republic of Ireland: National Minimum Wage - Inability to pay claims proposed for Employment Agreements

Written by Ian Congreave - Filed under: Labour Court on July 29th, 2009

The Minister for Labour Affairs, Dara Calleary, has proposed bringing the Joint Labour Committee and Registered Employment Agreements systems into line with the procedures already established under the National Minimum Wage Act, 2000 that allow individual employers to submit “inability to pay” claims to the Labour Court for adjudication.

Section 41 of the National Minimum Wage Act, 2000, provides that where an employer cannot afford to pay the national minimum wage due to financial difficulties, an application can be made to the Labour Court which can, following an inquiry, exempt the employer from paying the rate for between 3 months and 1 year. The employer must be able to demonstrate that the proposed exemption has the consent of a majority of the employees, who must also agree to be bound by the Labour Court decision.

Further information:
Minister Calleary says that statutory wage setting mechanisms may need to be re-balanced to take account of severe economic challenges at enterprise level

The UK Payroll News is sponsored by HRD & Payroll Solutions

Written by Ian Congreave -

Filed under: Labour Court on July 29th, 2009