IBEC seeks clarity on employment agreement ruling

Updated: Friday, 10 May 2013 23:11

Employers' group IBEC has called for legal clarity after the Supreme Court ruled that Registered Employment Agreements between employers and workers are unconstitutional.

Speaking on RTÉ's Morning Ireland, IBEC Director Brendan McGinty said that the government needs to clarify the legal status of REAs, which were created since 2012.

That was when the government introduced new legislation governing the agreement of fixed wage agreements between staff and employers.

However, Mr McGinty said that the court's judgment should not affect workers who had contracted terms and conditions of employment with their employer.

He said that the "immediate cause of concern" for employers was that many companies had set out to use the new regime which was introduced in 2012.

Employers and workers had entered into negotiations on that basis and now found themselves in "limbo" following the ruling, Mr McGinty said.

He said that IBEC favoured the establishment of a reformed version of registered agreements in which employers and staff could agree to set wages and other terms of employment.

However, he said it was important that this did not result in onerous conditions being imposed on employers who did not sign up to these agreements.