National Minimum Wage Act 2000
Similar to the establishment of minimum wage in the United States, Ireland established its own National Minimum Wage Act in April 2000. The act established the minimum hourly wage for workers in Ireland at a rate of €8.65 as of July, 2007. The act is more complex, however, than just its determination of the minimum wage. It consists of several parts that define who is covered by the act and what is expected of employers.
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Coverage
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The National Minimum Wage Act covers all workers in Ireland except those who fit within the categories excluded by the act. Those who are not covered include immediate relatives of employers and anyone working as an apprentice in trades like bricklaying or plumbing that are covered by the Labour Services Act of 1987 and the Industrial Training Act of 1967. All part-time and temporary employees are covered, as are workers who are paid on a performance or commission basis. If the compensation they receive is less than the minimum wage, employers must provide the compensating difference to reflect the number of hours they worked at the minimum rate of pay or better.
Defining Workers
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The act also establishes a clear definition of who are considered workers and who are not. The term "worker" is used to describe an "experience adult worker" who is at least 18 years old. Employees under the age of 18 can be compensated at a rate of €6.06 per hour. Various exclusions apply to special situations such as workers who turn 18 after they begin working or during the training process.
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Trainee Pay
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The Minimum Wage Act does make it possible for employers to pay employees a trainee rate of pay below the minimum wage during their initial stage of employment. Trainees can be paid a wage ranging from €6.49 to €7.79; the amount is determined by which level of training the trainee is receiving. In other words, trainees who go through more than one period of training en route to their job must be paid more than the initial €6.49 per hour.
Reckonable Pay
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When calculating the average rate of pay for each employee, an employer may take into account overtime hours and differential pay for working different shifts. Employers can take into account basic pay, shift premiums, incentive pay, commission pay and even room and board, if they provide it to the employee. Pay is determined based on a 40-hour work week, as established by the act.
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References
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