Law & Regulation
Law & Regulation News
Law & Regulation News

New Regulations on Transparent and Predictable Working Conditions

The European Union (Transparent and Predictable Working Conditions) Regulations 2022 was signed into Irish Law on 16 December 2022.

The aim of the new directive is to improve working conditions by encouraging transparency and predictable employment terms. Whilst Ireland had existing legislative protection in place regarding written terms of employment, this new directive introduces further obligations for employers, and we strongly encourage employers to review their terms of employment to ensure that they are compliant.

The major changes are to the following:

Probationary Periods
Probationary periods are limited to six months; but this period can be increased if it can be justified by the Employer or if the Employee is absent due to illness or leave
Information Relating to Employment
Irish Employers are already obliged to provide certain information to Employees within 5 days of commencing employment. The Directive now provides that a number of items, that were previously part of the written statement to be provided within two months of commencing employment, must now be provided as part of the “Day 5” statement. Separately, all other terms of employment required to be provided to Employees as per the Terms of Employment (Information) Act 1994 are now required within one month of the employment commencement date (previously two months).
Exclusivity Clauses
The Directive prohibits exclusivity clauses and places limits on incompatibility clauses. It also provides the right to Employees to take up parallel Employment, subject to certain exceptions. Any adverse treatment of an Employee who does take up other employment is prohibited.
Predictable Work
Employees with very unpredictable working schedules, and those carrying out “on-demand” work now have the right to know in a reasonable period in advance when work will take place. There is anti-abuse legislation for zero-hour contract work and the Directive also provides for right for employees to request to be transferred to a form of employment with more predictable and secure working conditions where available and to receive a reasoned written reply.
If mandatory training is required for an Employee to carry out their job, then this must be provided at no cost to the Employee and the training provided during working hours.
This is just one of the updates that Irish businesses need to be aware of in 2023.

There are many more pending. The Work Life Balance Bill which covers off the much debated “Right to Request remote Work”, is still pending this was expected to have been delivered by the end of 2022 however it seems to have stalled.

Corporate Enforcement Authority (CEA) publishes informative note on the topic of Early Warning Tools and Restructuring Frameworks

The Corporate Enforcement Authority (CEA) published an Informative Note on the topic of Early Warning Tools and Restructuring Frameworks.

The purpose of the document is to provide assistance to company directors in understanding certain aspects of the European Union (Preventive Restructuring) Regulations 2022. Specifically, the Information Note has been prepared with a view to assisting company directors to understand:

  • The importance of maintaining adequate accounting records,
  • what is meant by a company being in financial difficulty, being unable to pay its debts and being insolvent respectively,
  • specific aspects of company directors’ duties where a company is in financial difficulty, and
  • the potential consequences of non-compliance with company directors’ duties.

The Information Note also:

  • Provides a series of easy-to-understand indicators that can help to identify whether a situation might be developing in which a company will experience difficulties in paying its debts
  • Sets out certain key steps that company directors can take to ensure, on an ongoing basis, that they are aware of a company’s financial position.
  • Details of various restructuring options open to companies and their directors where financial difficulties are being experienced. These include Small Company Administration Rescue Process (SCARP) and examinership.

The CEA would like to thank those who responded to the consultation exercise that preceded publication of the Information Note for their thoughtful and considered contributions.

The Information Note and accompanying Feedback Statement can be accessed on our Information Notes page.