NATIONAL MINIMUM WAGE (LOW PAY COMMISSION) ACT 2015

Cited as:IR No. 22/2015
Jurisdiction:Ireland


NATIONAL MINIMUM WAGE (LOW PAY COMMISSION) ACT 2015

2015 Number 22

An Act to amend the National Minimum Wage Act 2000 to provide for the establishment of a body to be known in the Irish language as An Coimisiún um Pá Íseal or in the English language as the Low Pay Commission to advise on setting a national minimum wage; to make provision for the purposes of the operation of the Workplace Relations Act 2015 and, for that purpose, to amend that enactment and certain other enactments; and to provide for related matters.

[15th July 2015]

Be it enacted by the Oireachtas as follows:

1 Preliminary and General

PART 1

Preliminary and General

S-1 Short title, collective citation and construction

1 Short title, collective citation and construction

(1) This Act may be cited as the National Minimum Wage (Low Pay Commission) Act 2015.

(2) This Act (other than Part 3) and the National Minimum Wage Act 2000 may be cited together as the National Minimum Wage Acts 2000 and 2015 and shall be construed together as one Act.

S-2 Definition

2 Definition

2. In this Act "Principal Act" means the National Minimum Wage Act 2000 .

S-3 Repeals

3 Repeals

3. Sections 11, 12 and 13 of the Principal Act are repealed.

2 Low Pay Commission

PART 2

Low Pay Commission

S-4 Amendment of section 2 of Principal Act

4 Amendment of section 2 of Principal Act

4. Section 2 of the Principal Act is amended, in subsection (1), by-

(a) the insertion of the following definitions:

" 'Act of 2015' means the National Minimum Wage (Low Pay Commission) Act 2015;

'Commission' means the Low Pay Commission established under section 10A (inserted by section 5 of the Act of 2015);",

and

(b) the substitution of the following definition for the definition of "national minimum hourly rate of pay":

" 'national minimum hourly rate of pay' means the rate of pay declared by order of the Minister under section 10D(inserted by section 8 of the Act of 2015);".

S-5 Establishment of Low Pay Commission

5 Establishment of Low Pay Commission

5. The Principal Act is amended by the insertion of the followingsection after section 10 but in Part 3:

"10A. (1) There is hereby established a body to be known in the Irish language as An Coimisiún um Pá Íseal or, in the English language, as the Low Pay Commission to perform the functions conferred on it by section 10C (inserted by section 7 of the Act of 2015).

(2) Subject to this Act, the Commission shall be independent in the performance of its functions.

(3) The provisions of Schedule 2 (inserted by section 10 of the Act of 2015) shall apply to the Commission.".

S-6 Duty of Commission

6 Duty of Commission

6. The Principal Act is amended by the insertion of the following section after section 10A:

"10B. The Commission in the performance of the functions assigned to itby section 10C shall make recommendations to the Minister regarding the national minimum hourly rate of pay that-

(a) is designed to assist as many low paid workers as is reasonably practicable,

(b) is set at a rate that is both fair and sustainable,

(c) where adjustment isappropriate, is adjusted incrementally, and

(d) over time, is progressively increased,

without creating significant adverse consequences for employment or competitiveness.".

S-7 Functions of Commission

7 Functions of Commission

7. The Principal Act is amended by the insertion of the following section after section 10B:

"10C. (1) Without prejudice to the generality of section 10B, the Commission shall once each year-

(a) examine the national minimum hourly rate of pay, and

(b) make a recommendation to the Minister respecting the national minimum hourly rate of pay.

(2) (a) A recommendation under this section shall be accompanied by a report on the matters considered when making the recommendation.

(b) A recommendation and report under this section shall be furnished to the Minister on or before the third Tuesday falling in July in the year to which the examination relates.

(3) When making a recommendation under subsection (1)(b), the Commission shall have regard to-

(a) changes in earnings during the relevant period,

(b) changes in currency exchange rates during the relevant period,

(c) changes in income distribution during the relevant period,

(d) whether during the relevant period-

(i) unemployment has been increasing or decreasing,

(ii) employment has been increasing or decreasing, and

(iii) productivity has been increasing or decreasing,

both generally and in the sectors most affected by the making of an order under section 10D (inserted by section 8 of the Act of 2015),

(e) international comparisons, particularly with Great Britain and Northern Ireland,

(f) the need for job creation, and

(g) the likely effect that any proposed order will have on-

(i) levels of employment and unemployment,

(ii) the cost of living, and

(iii) national competitiveness.

(4) (a) If so requested by the Minister, the Commission shall examine and report its views and recommendations on such matters, related generally to the functions of the Commission under this Act, as are specified by the Minister in that request.

(b) A request under paragraph (a) shall-

(i) be made not later than 2 months after this Act comes into operation and, thereafter, not later than 2 months after the beginning of each year,

(ii) be part of that year's work programme of the Commission, and

(iii) specify the period within which the Commission shall report its views and recommendations to the Minister.

(c) The Minister may extend the period specified under paragraph (b)(iii).

(5) The Commission shall once every 3 years report generally on the operation of this Act and, in particular, on the impact of any orders made under section 10D on low pay, income distribution and employment costs.

(6) When preparing a report under this section the Commission shall consult with such persons, including representatives of employers and employees, as it thinks appropriate.

(7) The Minister shall cause a copy of any report or recommendation furnished to him or her in accordance with this section to be laid before each House of the Oireachtas not later than 3 months after the receipt of that report or recommendation.

(8) The Commission shall have all such powers as are necessary or expedient for the performance of its functions.

(9) In this section 'relevant period' means-

(a) in the case of the first report furnished under subsection (2)(b), the period since the most recent making of an order under section 11 of the Principal Act, or

(b) in the case of a second or subsequent report furnished under subsection (2)(b), the period since the most recent making of an order under section 10D (inserted by section 8 of the Act of 2015).".

S-8 National minimum hourly rate of pay

8 National minimum hourly rate of pay

8. The Principal Act is amended by the insertion of the following section after section 10C:

"10D. (1) Within 3 months of the date of receipt of a recommendation and report submitted to him or her under section 10C(2) and having considered the report and recommendation and having had regard to section 10C(3), the Minister shall-

(a) by order declare a national minimum hourly rate of pay-

(i) in the terms recommended by the Commission, or

(ii) in other terms,

or

(b) decline to make such an order.

(2) Where the Minister-

(a) by order declares a national minimum hourly rate of pay in terms other than terms recommended by the Commission, or

(b) declines to make an order declaring a national minimum hourly rate of pay,

the Minister shall prepare and lay before both Houses of the Oireachtas a statement of his or her reasons for so doing.

(3) The national minimum hourly rate of pay declared by order under this section may include an allowance in respect of board and lodgings, board only or lodgings only at such rates as are specified in the order.

(4) Where the Commission fails to make a recommendation or submit the report required in accordance with section 10C(2)(b) the Minister may, by order, having had regard to section 10C(3), declare a national minimum hourly rate of pay.".

S-9 Funding and resources

9 Funding and resources

9. The Principal Act is amen ded by the insertion of the following section after section10D:

"10E. (1) The Minister shall advance to the Commission out of moneys provided by the Oireachtas such amount or amounts as the Minister may, with the consent of the Minister for Public Expenditure and Reform, determine for the purposes of expenditure by the Commission in the performance of its functions.

(2) The Minister shall make available to the Commission such officers of the Minister and reasonable facilities and services as the Minister, after consultation with the Commission, may determine.".

S-10 Amendment of Principal Act

10 Amendment of Principal Act

10. The Principal Act is amended-

(a) in section 2-

(i) in subsection (1), in the definition of "pay", by the substitution of "Schedule 1" for "the Schedule", and

(ii) in subsection (3), by the substitution of "a Schedule" for "the Schedule" in each place where it occurs,

(b) in section 19-

(i) by the substitution of "Schedule 1" for "Schedule" in each place where it occurs, and

(ii) in subsection (5), by the substitution of "section 10D" for "section 11",

(c) in section 23(4) (a), by the substitution of "Schedule 1" for "the Schedule",

(d) in the Schedule, by the substitution of "Schedule 1" for "Schedule" in the first place it occurs, and

(e) by the insertion of the text set out in the Schedule after Schedule 1 (amended by paragraph (d)).

3 Workplace Relations

PART 3

Workplace Relations

S-11 Definition

11 Definition

11. In this Part-

"Act of 2015" means the Workplace Relations Act 2015;

"Minister" means the Minister for Jobs, Enterprise and Innovation.

S-12 Amendment of Industrial Relations Act 1946

12 Amendment of Industrial Relations Act 1946

(1) The Industrial Relations Act 1946 is amended by the insertion, in section 21, of the following subsection:

"(5) A document purporting to be signed by the chairman or the registrar of...

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