The Transparent and Predictable Working Conditions Law of 2023 N.25(I)/2023
Main Provisions of the Law
1. Written Statement of Terms
Employers must provide employees with a written contract which must inter alia, state clearly the identity of parties and place of work, title/category of work or description of work, commencement date, salary and all component elements each of which should be indicated separately, way payment of remuneration, duration and conditions of any probation period, hours of work and overtime/shifts arrangements, annual leave, existence of collective agreements, details about the relevant social security institution and protections relating to social security provided by the employer, termination procedures and notice period information.
2. Probationary Periods
The Law provides that probationary periods for a new employment cannot exceed six (6) months. The stipulated limit is not appliable to employees who hold the office of the director or company offier.
Where a fixed contract is in place, the duration of the probation period must be proportionate. The law permits an extensions of the probation period where the employee was absent from work during the probationary period.
3. Parallel Employment
Careful consideration should also be be given to any parallel employment provisions in employment terms. The Law provides that an employer cannot prevent an employee from working for another employer, outside their work schedule or treat an employee adversely due to this. The exception is where the restriction imposed is proportionate and based on objective grounds which may be health and safety, protection of trade secrets, avoidance of conflict of interest.
4. Minimum Predictability of Work
The Law introduced the concept of employees with unpredictable working arrangements and has set out specific information rights. These include the right of employees to know that their work schedule is variable, the number of guaranteed paid hours, the pay for additional hours worked, the working hours/days that they may be required to work and the minimum advance notice they are entitled to before starting any work assignment. These rights give the benefit of a minimum level of predictability where the work schedule is very flexible. Employees falling under this category have the right to refuse a work assignment if it falls outside the stipulated limits. At the same time, the Law protects employees against loss of income resulting from the late cancellation by the employer.
5. On-demand contracts
The Law allows on-demand or similar employment contracts that working hours are not predetermined, including zero-hour contracts, under which the employer has the flexibility of calling the employee to work as and when needed provided that the employee works on a casual basis as defined in the Law.
It is to be noted that the Law does not apply to employment relationships with agreed and actual working hours of an average of three hours per week or less in a reference period of four consecutive weeks.
6. Additional provisions
Some additional rights that have been introduced are that an employee who has completed the probation period may request a form of employment with more predictable and secure working conditions.
Additionally where traning is necessary in order for the employee to carry out their duties, such training shall be provided free of cost to the employee and and shall count as working time. Where possible, this training should take place during working hours.
7. Penalties
Employers should be aware that violation of any of the provisions of the Law shall render them liable for a fine not exceeding the amount €5,500.