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Sectoral Employment Orders

Sectoral Employment Orders 

Following a request from a trade union or employers’ organisation, the Labour Court can conduct an examination of the terms and conditions relating to the remuneration and any sick pay scheme or pension scheme in relation to a particular sector of the economy.  A ‘sectoral employment order’ (SEO) may set out minimum pay rates as well as pension and sick pay schemes for an economic sector.  This is defined as a “sector of the economy concerned with a specific economic activity requiring specific qualifications, skills or knowledge”

Having considered such a request, the Labour Court can make a recommendation, or refuse to make a recommendation, to the Minister for Business, Enterprise and Innovation to make a sectoral employment order (SEO).  Where the Minister has made a sectoral employment order in relation to a class, type or group of workers in a particular economic sector, the Court cannot consider a request in relation to the same class, type or group of workers in that sector, until at least 12 months after the date of the order, unless the Court is satisfied that exceptional and compelling circumstances exist which justify consideration of an earlier request.

A Section 14 Application Form to examine the terms and conditions of an Employment Sectoral Order should be completed and sent to the Labour Court for consideration of the request.

Labour Court Sectoral Employment Order Rules 2016

Construction Sector – new sectoral employment order rates to apply from 1 February 2022

The Minister of State for Business, Employment and Retail, Damien English T.D. has signed Statutory Instrument Number 598/2021 which sets new minimum rates of pay for workers in the construction sector from 1 February 2022. Statutory Instrument 598/2021 amends Statutory Instrument Number 234 of 2019  and both statutory instruments should be read together.

The amended SEO applies to all construction firms as defined in Statutory instrument Number 234/2019 and makes it compulsory for such firms to pay construction workers the new rates of pay provided in the amended order from February 2022 and make revised pension and sick pay contributions for the categories of workers as defined.

The amended SEO also contains a dispute resolution procedure to be utilised in the event of an industrial dispute between workers and employers to whom the SEO applies.

Minister English signs Statutory Instrument to give legal effect for Labour Court recommendation on new pay rates in the construction sector

S.I. No. 598/2021 - Sectoral Employment Order (Construction Sector) 2021

S.I. No. 234/2019 - Sectoral Employment Order (Construction Sector) 2019

Mechanical Engineering Building Services Contracting Sector

With effect from 6 March 2018, the SEO has effect in the Mechanical Engineering Construction Sector. The SEO applies to the Building Services Contracting Sector as defined in the order.

The SEO makes it compulsory for relevant Contracting Firms to

>pay workers the rates of pay provided in the order and to >provide a pension and sick pay scheme

for the categories of workers as defined in the order.

The SEO also contains a dispute resolution procedure to be utilised in the event of a dispute arising over a term in the order.

S.I. No. 59 of 2018 - Sectoral Employment Order (Mechanical Engineering Building Services Contracting Sector) 2018