THE LABOUR Court has ruled that the Health Service Executive breached the terms of Towards 2016 when it implemented its ban on recruitment last September without consulting staff or their unions.
The court ruled that the ban did have a significant effect on staff who should therefore have been consulted before it was implemented.
"It had the effect of reducing the number of staff available to provide a service to patients and this, in turn, placed available staff under additional pressure," the Labour Court said in its ruling.
"It also affected staff in that overtime and promotions were curtailed and staff members who had a legitimate expectation of resuming work after a career break had their return to employment delayed," it added.
"In the court's view the combined effect of these factors brought the initiative within the ambit of Section 28.13 of Towards 2016 and the HSE should have consulted the unions before the final decision was taken to implement these measures," it continued.
The HSE had told the court last month that the ban was implemented as part of its attempt to balance its budget at the end of last year.
At the time of the introduction of the ban it was running millions over budget. It argued that the ban did not constitute a new workplace-related initiative which would have a significant effect on staff. On that basis it contended that there was no obligation to consult staff in advance of implementing the initiative.
It was also submitted on behalf of the HSE that when the cost overrun came to light its chief executive officer, in his capacity as accounting officer, had a statutory obligation to take corrective action and could not be circumscribed in the discharge of that obligation by an obligation to consult with trade unions.
A number of health service unions which brought the case to the Labour Court last night welcomed the court's ruling. The Irish Medical Organisation welcomed the recognition that the ban had "a significant effect on staff" and the Irish Hospital Consultants Association said the process of consultation, which the Labour Court endorsed, must take place in advance of any similar decision being taken by the HSE in the future. It added that it was vitally important senior HSE management appreciate the impact of their decisions on patient care.