The Sectoral Employment Order (Mechanical Engineering Building Services Contracting Sector) 2018 (“SEO”) has been signed into law by Minister Pat Breen. With effect from 6th March 2018, the SEO applies to certain workers in the mechanical engineering building services sector (the “Sector”).
This is the second SEO enacted into law following the establishment of the SEO framework under the Industrial Relations (Amendment) Act 2015. The framework was introduced to replace the previously used mechanism, the Registered Employment Agreement (“REA”) system, which was declared unconstitutional in 2013 by the Supreme Court in the case of McGowan v The Labour Court.
The Order will affect qualified plumbers and pipefitter, registered apprentice plumbers and pipefitters (craftsmen) employed in the mechanical engineering building services contracting sector. Additionally, the Order relates to all employers of such workers, including those employed through an employment agency.
It would appear that some of the SEO provisions were copied almost exactly from the previous Construction Industry REA.
Terms under the SEO
Since finding that the previous registered employment agreement system were unconstitutional, there has been a lacuna in terms of worker protection and the SEO was sought to address this gap. Certainty surrounding wages and other benefits is of course a good thing for workers and their employers, although the burden of wage increases will significantly impact the price at which a construction project can be completed. Without further delay, Employers in this Sector will need to review and evaluate their payment practices to ensure that they comply with the new requirements set out in the Order, as it is legally binding and its terms are enforceable in the Workplace Relations Commission.
For any queries, please contact Anne O’Connell Solicitors at info@aocsolicitor.ie or +353 1 2903580
27th March 2018
Anne O’Connell
Solicitors
1-3 Burton Hall Road
Sandyford
Dublin 18
www.aocsolicitors.ie
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