From next Tuesday employees in the Republic will be entitled to an extra day's statutory leave. This will bring minimum holiday entitlements to 16 days a year. Four more leave days will be phased in during 1998 and 1999, bringing the minimum holiday entitlement to 20 days, or four weeks. This is one of the major features of the Organisation of Working Time Act, signed into force by the Minister of State for Labour, Trade and Consumer Affairs, Mr Tom Kitt, yesterday.
The Act also provides for minimum rest periods between shifts, reduced hours for night-workers and greater protection for those on "zero hour" contracts. People obliged to work Sundays will be entitled to premium payments or extra leave.
The other major provision of the Act is that employees will not be able to work more than 48 hours a week, unless they "opt out" by signing an agreement with their employer.
Those deciding to opt out of the 48-hour ceiling can work up to 60 hours a week until February 28th, 1998 and up to 55 hours a week thereafter. Such agreements must be negotiated through trade unions, where they represent the workforce, but individual workers can opt out of the 48-hour week in non-unionised companies. Such agreements must be approved by the Labour Court.
Originally there was no "opt out" provision in the Bill, despite strong opposition initially from IDA (Ireland), the Irish Business and Employers' Confederation and the US Chamber of Commerce. The IDA subsequently withdrew its objections.
Fianna Fail pledged that it would introduce an "opt-out" if it was returned to power, but in the event the last government agreed to modify the legislation. Business interests were concerned that a ceiling of 48 hours on the working week would be too inflexible. Some trade unionists were also concerned that in low-pay sectors, such as the security industry, it could force down earnings.
The 48-hour provision is flexible. The hours worked can be averaged over a six-month period to accommodate intense demands in sectors like construction or the power industry.
Many workers already enjoy longer holidays than the new statutory limit, but it is thought that around 100,000 employees will benefit from the measure. It may also encourage claims from workers who already enjoy longer holiday entitlements to seek extra leave days.