The national minimum wage comes into force today, despite concerns by business groups that employers have not been given adequate information or time to prepare for the changes. The Irish Congress of Trade Unions, however, has welcomed the move and has set up a helpline to advise workers on their rights.
Under the Act, most adult workers are entitled to £4.40 (€5.60) per hour. More than 160,000 people should benefit from the measure, which will add 1.6 per cent to the annual wage bill. Victimisation of workers for demanding their rights is prohibited. Workers under 18 are entitled to 70 per cent of the adult rate.
New adult entrants to the workforce, and people returning to work after more than three years on the dole, are entitled to 80 per cent of the adult rate for 12 months and 90 per cent for a further 12 months. After two years they are entitled to the full rate.
It had been thought that the legislation would not be enacted in time to meet today's deadline, which had been agreed with the social partners. This followed protracted debate in the Dail over some of the details, especially the inclusion of tips in the calculation of what constitutes an employee's reckonable earnings.
Tips were eventually excluded from the calculation and the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, managed to push through the legislation after appealing for co-operation from the Oireachtas.
The ICTU has set up a free helpline to advise workers on their rights. The number is 1800 440 400. It is also holding an information day at its headquarters in Parnell Square, Dublin, today. This will be provided by volunteers from ICTU's women's committee and youth committee. ICTU spokesman Mr Oliver O'Donohue said half of all workers earning less than the minimum wage are women and 40 per cent were under 25.
The Chambers of Commerce of Ireland research and press officer, Mr Malcolm Byrne, was critical of the Act, although the chamber accepted the idea of a minimum wage in principle. "We're far from happy about it," he said. "The minimum wage is coming in on Saturday and there has been absolutely no Government information campaign on it. People don't know what the detail is.
"There will be employers in breach of the legislation, unintentionally, tomorrow." He predicted the greatest confusion would arise over calculation of the reckonable earnings such as overtime and shift premiums to decide whether someone was paid enough to meet the average of £4.40 an hour required by the Act.
