Comment: Industrial relations in Ireland are on the eve of what is being billed as a revolutionary change, a change that will define the shape of relations between employers and employees for years to come.

The catalyst for this revolution is the long-awaited introduction into Irish law of the EU's Information and Consultation Directive (Council Directive 2002/14/EC).

The new legislation heralds a new era of formal engagement and consultation between employers and employees. While it will initially apply to companies and organisations in Ireland with more than 150 employees, by 2008 it will apply to the tens of thousands of businesses in the country with more than 50 employees.

The legislation will apply equally to companies and organisations in the private and State sectors.

Until very recently, it was envisaged that the primary legislation required to transpose the directive into Irish law would be ready for implementation at the end of last month.

Having missed that deadline, however, it is now understood that the finishing touches are being put to the Bill and that it is still expected to be introduced before the Dáil's summer recess. In the meantime, medium-sized businesses in Ireland are beginning to wake up to the fact that the old rules of industrial relations will no longer apply.

Within months, it is likely that thousands of businesses are going to have to come to terms with strict new rules. These will define how they engage with their employees and how they will share information with them on a range of issues which, until now, were solely the preserve of senior management - issues like market conditions, company performance, strategic challenges and profitability.

Until now, such policies were only to be found in a relatively small number of "progressive" businesses but, shortly, all companies with more than 150 employees will have to adopt them. In 2007, the bar will fall to cover those companies with over 100 employees, before settling in 2008 on all companies with more than 50 employees.

In fact, the Government could go further and try to capture all companies with more than 25 employees, but it is felt that this is unlikely.

So what will the new legislation mean?

In practice, the legislation will give employees a number of basic rights to commercial and operational information and require companies to put in place formal processes and procedures through which they can inform and consult with their staff on matters of mutual concern and interest.

For their part, employees will have the responsibility of selecting representatives who will act on their behalf in establishing suitable consultation processes and then represent the interests of those employees in the operation of the new processes.

Obviously, it is not only employers who will be affected by these changes, as trade unions will also have to adapt in response to the new legislation.

There is no certainty or requirement that existing trade union representatives will be selected to represent employees in the new arrangements, and some might argue that the existence of these arrangements might ultimately undermine the need for separate trade unions.

Certainly, some employers will hope that the existence of employee representative processes might prevent or minimise demands arising for full trade union representation.

In the short-term, one of the challenges for employers will be to define just what is suitable material for consultation.

The rule of thumb generally is that any information that is pertinent to the employees and the terms and conditions under which they work would be regarded as appropriate material for consultation.

But to fully honour the spirit of the new legislation - and to prevent falling foul of any of its disciplinary/ sanction elements - companies would be advised to adopt quite a broad view of the type of information which might be shared.

Already, research work which has been undertaken in conjunction with the preparation of the new legislation, has identified a wide diversity of practices across organisations in Ireland that will come within the scope of the consultation requirement.

For its part, the National Centre for Partnership Performance (NCPP) has outlined 11 principles of a "good practice approach to information and consultation".

These include proposals such as "aligning information and consultation activities with the organisation's strategy and business plan"; "understanding that information and consultation arrangements evolve as trust grows and allowing room for experimentation and innovation", and "ensuring that all managers in the organisation have the necessary skills to inform and consult with employees and representatives".

Both employers and employees will need to look very closely at the new legislation to understand and define exactly what, and how much, information is expected to be communicated, and in what manner.

Equally, whatever view you take of the new laws, it is clear that we are entering a period of very real and significant change in industrial relations in Ireland.

Hopefully, it is a change for the better.

Sandra Masterson Power is a solicitor in the employment law division at BCM Hanby Wallace Solicitors.