State bodies concerned over Minister’s job contract reform plan

The Department of Education and the HSE, the two largest employers in the public service, have expressed concern that labour market reforms being considered by the Government would make it much more costly to hire teachers, lecturers and health service personnel.

Minster of State for Business and Employment Ged Nash is planning to bring proposals to Cabinet shortly based on an expert report drawn up by a team from the University of Limerick, which had been asked to investigate "zero hour contracts", and on submissions from interested parties.

The HSE said the Limerick group had gone beyond its original terms of reference, adding it “does not accept its recommendations and proposed legislative amendments”.

“The HSE contends that the proposed legislative recommendations lack a clear rationale given the study’s original terms of reference and would impose unnecessary costs and an administrative burden on health service employers.”

Sources said Mr Nash was “minded” to include a recommendation made by the group that employers should be banned from offering less than three continuous hours of work unless a persuasive case was made against it in the consultation process.

The report also urged that where this was not implemented, employees should receive 150 per cent of regular pay rates.

Contract

Sources said the Minister was also “minded” to look at the expert group recommendation that employers would have to give employees on their first day a contract which provided a true reflection of the hours they would be expected to work.

The Limerick report warned that some employers favoured what were known as “if and when” working arrangements. Under these, there was no contractual obligation on the part of an employer to offer work or on the part of an employee to carry out work as a way of getting out of existing employment protection legislation.

In its submission to Mr Nash, the Department of Education said there were obstacles to providing notice to substitute teachers at 72 hours’ notice for covering absences due to illness or bereavement. This would result in substitute teachers being paid at much higher rates, with consequent cost implications for the exchequer.

The submission also said some low-hour work in the third-level sector involved individuals – often employed outside the education system – who teach specialist courses or modules on low hours.

As a result, a ban on employers offering less than three continuous hours could have significant implications on the ability of colleges and universities to provide specialist tuition.

Service requirements

The HSE said it was concerned that the proposal that employers should give staff a statement providing a true reflection of hours required “fails to recognise that an employee’s weekly working hours may fluctuate in accordance with service requirements”.

It said if short notice of absence related to night duty, the position would almost always need to be filled and in such circumstances it would be impossible to provide 72 hours’ notice.

“The HSE is also of the view that a proposal to pay staff 150 per cent of the normal rate for such periods is not appropriate and would pose very major additional costs on the employer at a time of challenging budgetary circumstances in the health sector and wider public service.”