Construction and Electrical Contracting Sectoral Employment Orders (SEOs)

Anthony Brady, Industrial Relations and Employment Services Executive with the CIF, outlines the terms of the new Sectoral Employment Orders in the Construction and Electrical Contracting Sectors.

The Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, Mr. Pat Breen has recently signed into law the Sectoral Employment Order (Construction Sector) 2019 (S.I. No. 234 of 2019) and the Sectoral Employment Order (Electrical Contracting Sector) 2019 (S.I. No. 251 of 2019) as provided for under the Industrial Relation (Amendment) Act 2015. The Electrical Contracting SEO is the first SEO to be signed into law in that sector.

Both SEOs outline a definition of the sector, inclusive of agency workers, they provide for hourly rates of pay, overtime rates, pension, sick pay and death in service contributions, daily and weekly working hours and a dispute resolution procedure.

The Sectoral Employment Order (Construction Sector) 2019, which becomes legally binding on 1 October 2019 to all employers of craft workers, general operatives and apprentices in the construction industry, provides for the following:

  • An increase in hourly rates of 2.7% on 1 October 2019.
  • An increase in hourly rates of 2.7% on 1 October 2020.
  • The basic working week to be set at 39 hours.
  • Pension, sick pay and death in service contributions to increase in line with increases in pay.
  • The new entrant rate of pay to remain in place for two years.

The Sectoral Employment Order (Electrical Contracting Sector) 2019, which becomes legally binding on 1 September 2019 to all employers of qualified electricians and apprentices in the electrical contracting sector, provides for the following:

  • The 1st, 3rd and 6th year out of time rates as follows:
    • Category 1 (1st year)                 €23.49
    • Category 2 (3rd year)                 €23.96
    • Category 3 (6th year)                 €24.34
  • Apprentice rates, as a percentage of the Category 1 rate, as follows:
    • Apprentice Year 1 (30%) €7.05
    • Apprentice Year 2 (45%) €10.57
    • Apprentice Year 3 (65%) €15.27
    • Apprentice Year 4 (80%) €18.80
  • The basic working week to be set at 39 hours.
  • Pension, sick pay and death-in-service contributions remain in line with rates applicable in the construction sector. Contribution rates will increase by 2.7% on 1 October 2019.
  • Eligibility to enter a pension scheme at 20 years of age (same as the mechanical sector).

The lead-in period for both SEO’s now gives contractors the opportunity to provide for these increases when tendering for new projects.

For queries relating to the above, please contact a member of the Industrial Relations & Employment Services Department on 01 406 6000.

Also see the new A-Z Employment Guide from the CIF Industrial Relations & Employment Services Department here.

 

Anthony Brady, Industrial Relations and Employment Services, CIF 

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