Employment law transgressors will face possible jail sentences of up to three years and fines of up to €250,000 under new legislation published by the Minister for Enterprise, Trade and Employment Micheal Martin yesterday.

The Employment Rights Compliance Bill 2008 will completely overhaul the State's employment rights framework and is a key element in the programme of worker protection negotiated in 'Towards 2016'.

Announcing the measures, the Minister said: "This Bill will modernise the labour inspectorate, strengthen enforcement of employment rights and work permits, promote greater compliance in the workplace and increase the penalties for those employers who seek to gain advantage by denying employees their entitlements under law"."

The measures proposed in the Bill include the establishment of the National Employment Rights Authority (NERA) on a statutory basis; the strengthening of powers in the area of labour inspection ensuring labour inspectors have greater access to premises, personnel and data and empowering NERA to prosecute summary offences.

-- Advertisement --

Additionally, labour inspectors will be empowered to examine employment permits, to prosecute offences and to conduct investigations jointly with other agencies including Revenue Commissioners, Social Welfare inspectors and An Garda Sí­ochána.

The Bill will also provide for greater penalties for offences arising under employment law - in most cases up to €5,000 and/or 12 months' imprisonment for summary offences and €250,000 and/or 3 years' imprisonment for indictable offences.

In the event of breaches of employment law being reported in good faith, the legislation will also protect whistleblowers.

Furthermore, employment records must be kept for three years, and for two years after an employee leaves.

Mr Martin said: "This is the most significant single piece of legislation introduced in the employment rights area in recent years. It is a comprehensive package and a firm indication of this Government's commitment to the principles of social partnership.

"It is a reminder that, in the drive for greater competitiveness, there is a need to ensure that responsible employers who meet their obligations to employees will have a level playing field.

"Compliance with all aspects of employment law will be strictly enforced including in the employment permits area, national minimum wage, registered employment agreements and protection of young persons in employment," he concluded.

(VB/JM)