Written answer
Departmental Regulations
991. Deputy Shane Moynihan asked the Minister for Enterprise, Tourism and Employment if he will consider introducing a statutory minimum implementation period between the signing of an Employment Regulation Order and its commencement date; whether he has assessed the impact on employers operating under fixed-price contracts of significant labour cost increases arising from Employment Regulation Orders, including increases in minimum rates of pay, premium payments, employer PRSI contributions and auto-enrolment pension obligations; and if he will make a statement on the matter. [55814/26]
Comment on this
There is currently no statutory minimum period between the making of an ERO and its commencement. However, notice of the draft proposals being considered as part of an ERO process is typically published in national newspapers by the JLC and is also available on the Labour Court's website for 21 days before the Labour Court finalises its recommendation to the Minister. This process provides interested employers and workers with an opportunity to submit written representations on the proposed ERO.
Joint Labour Committees (JLCs) - which are independently chaired and comprise equal numbers of representatives of employers and workers - are independent in their functions and I have no role in relation to the negotiation of a proposal for an Employment Regulation Order (ERO). When formulating proposals to submit to the Labour Court, a JLC must consider the legitimate interests of both employers and workers likely to be affected by the proposals, including a number of criteria set out in legislation.
Under legislation, my role in the ERO process is clearly defined. As soon as practicable after receiving a copy of the proposals for an ERO from the Labour Court, where I am satisfied that the process obligations and considerations under Sections 42A and 42B of the Industrial Relations Act, 1946 have been complied with, and where I consider it appropriate to do so, I make an ERO giving effect to the proposals, or should I refuse to make such an Order, I will notify the Court as to the reasons why.
This non-interventionist approach is consistent with Ireland’s long-standing tradition of voluntarism. Nevertheless, where disputes arise, the State’s industrial relations bodies — the Workplace Relations Commission and the Labour Court — remain fully available to assist the parties through the State’s established dispute-resolution framework.
On the cost to employers generally, the Small Business Unit was established in my Department last year, fulfilling a Programme for Government commitment. The Unit has been tasked with ensuring that the needs and issues of small businesses have a dedicated focus and are recognised and acknowledged across Government. There are a number of tools this Unit and my Department will use to enable its work:
• First, through the rigorous implementation of the SME Test. The SME Test tasks policy makers to consider the impact that any new policy, legislation, or regulation, may have on SMEs, and to mitigate against those impacts where appropriate.
• Secondly, access to grants and support programmes have been simplified through the launch of the National Enterprise Hub. The NEH is hosted and operated by Enterprise Ireland and has over 250 different supports for businesses from 32 Departments and agencies.
• Third, the Small Business Unit has responsibility for the Local Enterprise Offices (LEOs). We are ensuring the LEOs are properly resourced to help small businesses. A review of the full suite of LEO supports is currently underway while my Department and EI have completed a review of applications for all LEO grant schemes to reduce the number of questions and simplify requirements.
Additionally, a series of measures were adopted in 2025 to help minimise cost pressures for Irish firms. These include extending the timeline for the introduction of the Living Wage by three years (to 2029) and a halt to any further increases under the Statutory Sick Leave scheme.
Finally, insofar as the JLC and ERO system, which operates in traditionally lower-paid sectors, is concerned, I have no plans to alter how they operate at this time.