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Limerick University to carry out study on Zero Hours Contracts printable version

08 Feb 2015: posted by the editor - Business, Ireland

A team from the Department of Personnel and Employment Relations in the Kemmy School of Business at the University of Limerick is to carry out a study into the prevalence and impact of zero hour and low hours contracts.

Appointed by Business and Employment Minister Ged Nash, the team is expected to report back to the Minister within six months with its findings and also recommendations for policy change, should they be considered warranted.

Led by Professor Patrick Gunnigle and Dr. Michelle O'Sullivan, the team is expected to examine already existing data relating to zero and low hour contracts and to also generate new information through a range of methodologies, including meeting and speaking to worker representatives and employers in areas of the economy associated with low hour contracts. The goal of the study is to fill the gap that currently exists in terms of hard data on zero and low hour contracts.

Zero hour contracts of employment are contracts typically where the employee is available for work but does not have specified or guaranteed hours of work. These types of contracts are usually found in sectors such as retail, hospitality, health and education.

Minister Nash said, “The Statement of Priorities agreed by the Taoiseach and Tánaiste last July included a commitment to carry out a study into zero hours contracts. I am very pleased to be delivering on this commitment, but we are going further and examining low hour contracts of 8 hours or less.

“This is very much in keeping with my dignity of work agenda. The recovery that the country is beginning to enjoy must also be felt by our citizens and as we focus our minds on returning the country to full employment by 2018, it is my role to ensure that the jobs we are helping to create are decent jobs with decent pay.

“Work must pay and I will not allow a situation to develop where the jobs that are being created or sustained here do not allow families to lift themselves out of poverty. This study will help Government in the first instance to determine how widespread zero and low hour contracts are, but crucially the impact they are having on working people.

“If this study finds such work contracts have a serious and detrimental impact on our citizens, then the Government will act.”

The awarding of the contract to carry out the study into zero and low hour contracts follows a competitive tender.

It is expected that the views of stakeholders, such as employers, workers, employer representative bodies, trade unions and Government Departments will contribute to the study.

All sectors of the economy are expected to come within the scope of the study; however, a particular focus will be on the retail, hospitality, education and health sectors. The study is expected to cover both the public and private sectors.

Workers in Ireland have some protections under the Organisation of Working Time Act. This ensures that where employees suffer a loss by not being given the hours they were requested to work or be available for work they can be compensated for 25% of the time or 15 hours, whichever is less. In this regard, the study will also assess current employment rights legislation as it applies to workers on zero hour and low hour contracts.

Relevant Legislation
The Protection of Employees (Part Time Work) Act 2001 is the main piece of Irish legislation establishing the employment rights of part-time employees. The purpose of the 2001 Act is to provide that part-time employees are not treated in a less favourable manner than a comparable full-time employee unless there are objective reasons for such treatment.

Two other Acts of note are the Organisation of Working Time Act 1997 and the Protection of Employees (Temporary Agency Work) Act 2012.

Section 18 of the Organisation of Working Time Act 1997 (OWT Act) provides for a specific protection for employees on zero hours contracts. Where an employee suffers a loss by not working hours he/she was requested to work or be available to work, the zero hours provisions of the Act ensure that he/she is compensated for 25% of the time which he/she is required to be available or 15 hours whichever is the lesser. If the employee got less than 25% of the scheduled work, the compensation would bring the employee’s pay up to 25% (or 15 hours).

The Protection of Employees (Temporary Agency Work) Act 2012 provides rights regarding equality of treatment to temporary agency workers, many of who may be part-time workers. The Act gives all temporary agency workers the right to equal treatment with regular workers from their first day at work in respect of key terms and conditions of work, including pay, the duration of working time, rest periods, night work, annual leave and public holidays. Under the Act, temporary agency workers must also have equal access to facilities such as childcare and must be informed of permanent employment opportunities.

Tags: zero hour contracts, low hour contracts, employee protection

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