Variable hours and zero hour contracts have become very controversial in recent years. Originally introduced to help out employers whose business trading patterns are inconsistent, it became clear that some companies might be abusing the usage of these contracts. An employee on a variable hours contract can’t plan their expenses, for example when thinking about getting a mortgage or a loan. Recent disputes before Mandate and Dunnes Stores brought this issue to public attention. The Banded Hours Contract Bill 2016 proposes bringing in banded hours contracts which would give more stability and safety to those employees. The proposal Proposed banded hours are:
- Band A 11.5 hours or more, but less than 15 hours
- Band B 15 hours or more, but less than 20 hours
- Band C 20 hours or more, but less than 25 hours
- Band D 25 hours or more, but less than 30 hours
- Band E 30 hours or more, but less than 35 hours
- Band F 35 hours or more, but less than 37 hours
The Bill will allow an employee or his/her union rep to submit a written request to their employer to be moved to an increased weekly band of hours (see above), where the band requested exceeds the average hours worked weekly in the previous six months, and once this employee is in continuous employment of six months with that employer. Once this request is made, the employer will have to consider the request within 21 days. When this request is granted, a reply in writing has to be provided to the employee as soon as possible. This reply will need to include information of hours offered – which should be at least the minimum numbers of hours in the band. Such a request can only be refused if the employer is able to show that business is experiencing severe financial difficulties and that there’s a risk of:
- The employee being made redundant
- The substantiality of the business would be adversely affected, or
- The business could not sustain the giving of increased level of banded hours
Any employee who’s dissatisfied with not receiving a banded hours contract as per their request will be able to log a claim to WRC. It will be the employers’ obligation to provide employees with a notice of number of working hours allocated to workers, and to which band those hours fall under per week. This has to be provided in English, Irish and in other languages if needed. Items of concern The concerns surrounding this bill centre on the fact that employers will have to demonstrate that they are “experiencing severe financial difficulties” to reject such an application, but in fact they might have genuine operational needs for requesting the flexibility. Furthermore, the 6 month period may not be suitable for all employers, as some of them will have increased working hours over 6 month periods that would not reflect normal availability to work. Protection of employment The Protection of Employment (Uncertain Hours) Bill 2016 was proposed by the Labour Party, and proposes a similar 6 month review period, but allows employers to refuse a request if they believe it’s not well founded e.g. if the employee was working longer hours due to the seasonal nature of the job. The bill also proposes that when an employee works for a period of time then doesn’t get any further work, and after that is engaged in another period of work, then the next time should be treated as a lay off. While this bill seems to try to resolve the issue of casual employment, it could also apply to a subcontractor who does not fall under the employee status. While this bill will allow workers to greater certainty in their financial planning and, as such, will be welcomed by unions and employees, it may represent a challenging time for employers. It also approaches the subject of flexible hours as something very unfavourable for employees, whereas some employees grossly benefit from this arrangement, to the point where the UK introduced a statutory right to request more flexible working arrangements. If you have any questions regarding the issues in this article, please don’t hesitate to contact our 24 Hour Advice Service on 01 855 50 50.
