The Employment (Miscellaneous Provisions) Bill 2017 (“the Bill”) had a broad range of effects for employers upon introduction, specifically in relation to “Low Hour” or “Zero Hour” contracts.

Below, we examine a number of the more topical aspects of the Bill which we expect to be of interest to employers:

• Terms of Employment
• Banded Hours Of Work
• Employers To Offer Hours To Part Time Staff
• Prohibition On Zero-Hour Contracts
• Conclusion

1. Terms of employment

It is an obligation for employers to provide employees with a written statement within five days of commencement of their employment confirming the following:

• The full names of the employer and employee;
• The address of the employer;
• The duration of the contract;
• The method of calculating remuneration;
• The hours the employee is to be expected to work per week.

From a practical point of view and in an effort to avoid the penalties under the Bill, it is recommended that all employers, in an offer letter being issued to a new employee should include the prior information. A contract of employment can then be issued within the 8-week period as provided for in the Terms of Employment (Information) Act 1994.

In the Bill’s current format, if an employer is convicted for failure to obey with the contents of the bill, they may be liable on summary conviction to a Class A (i.e. up to €5,000) fine and or a term of imprisonment not exceeding 12 months.

2. Banded hours of work

Under the Act, where an employee’s actual working hours exceed their contracted hours over a 12-month reference period, the employee is entitled to request placement in a higher band of hours reflective of their actual work pattern.

This provision has raised concerns among employers, particularly in sectors with seasonal fluctuations, as it may create longer-term wage obligations that businesses cannot sustain. Notably, the Act does not provide clarity on how an employer might later reduce an employee’s hours if demand decreases, creating uncertainty for employers managing fluctuating workloads.

3. Employers to offer hours to part time staff

The Act requires that any additional hours of work that become available must be offered to existing part-time employees before being offered to others, including full-time staff or new hires. This provision significantly affects workforce management and customary practices, such as offering overtime primarily to full-time employees. It does not consider issues such as employee qualifications or training needs, and places a statutory expectation on employers to allocate additional work to part-time employees even when they may not be suited to the roles.

4. Prohibition on zero-hour contracts

The Act imposes a strict prohibition on zero-hour contracts, with limited exceptions. These are restricted to cases that are genuinely casual in nature or where the work is necessary to provide emergency cover.

While the intent is to provide greater certainty and protection to workers, many employers have expressed concern that the restrictions limit flexibility and may make it harder to fill part-time or on-call roles without breaching the legislation.

5. Conclusion

The Employment (Miscellaneous Provisions) Act 2018 has had significant and far-reaching implications for employers across all sectors. In light of these changes, employers are encouraged to review their employment practices and policies to ensure full compliance and to seek HR guidance.

You can learn more about how the HR Company can help you in regards to Contracts along with all of your HR needs.