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COMMERCIAL
Industrial training levy schemes for 1998 published
A series of Statutory Instruments have been made which set out the levy
to be imposed on various industries for 1998 for the purpose of meeting
the expenses of FAS under the Industrial Training Act 1967 and the Labour
Services Act 1987. The levy is assessed by FAS in respect of each
industry and there is a right of appeal to an appeal tribunal. The
industries affected are:
- food, drink & tobacco;
- chemical and allied products;
- clothing and footwear;
- engineering; and
- textiles.
Business statistics
Two Statutory Instruments have been made which stipulate that certain
undertakings engaged in industries relating to energy, water, non-energy
producing minerals and manufacturing and undertakings engaged in prospecting,
exploration for and extraction of non-energy producing minerals and associated
manufacturing industries will be obliged to supply information, pursuant
to surveys, to the Central Statistics office at yearly intervals between
1998 and 2002. The information shall include particulars of:
- the nature of the business;
- the value if fixed capital assets acquired or disposed of, stocks,
work-in-progress, turnover invoiced purchases, VAT due, other indirect
taxes due, and operating subsides all relating to the year in question;
- the number of persons engaged in the undertaking;
- the value of gross earnings paid to employees; and
- the value of other labour costs incurred during the year in question.
Statistics (Census of Industrial Production) Order 1998 and Statistics
(Census of Industrial Commodities Production) Order 1998.
Compensation for investors
An Act came into force in 1 August 1998 which:
- provides for the payment of compensation to clients of investment
business firms, stock exchange member firms, credit institutions and
insurance intermediaries when one of these bodies ( “investment firms”)
is unable to return money or investment instruments belonging to clients;
- transposes the EU Investor Compensation Directive into domestic law;
- appoints the Central Bank as the supervisory authority for investor
compensation; and
- provides for the establishment of a limited company to administer
investor compensation arrangements out of a fund to be financed by investment
firms.
Investor Compensation Act 1998
Debt enforcement procedures to change
A private member’s Bill has been introduced which seeks to:
- empower a court to make an attachment of earnings order against a
debtor to whom earnings fall to be paid;
- oblige an employer to make specific periodical deductions in line
with such an order;
- extend Community Service Orders to fine defaulters and civil debtors;
and
- permit such an attachment to be make against a debtor’s social welfare
assistance.
Enterprise Ireland
An Act was signed by the President on July 13, 1998 which:
- establishes Enterprise Ireland;
- defines the functions of that body;
- dissolves Forbairt and An Bord Trachtala; and
- amends various Acts including the Industrial Development Acts 1986
to 1995, the Shannon Free Airport Development Company Limited (Amendment)
Act 1986, the Metrology Act 1996 and the National Standards Authority
of Ireland Act 1996.
Industrial Development (Enterprise Ireland) Act 1998
Prompt payments interest rate set
The rate if interest payable under the Prompt Payment of Accounts Act
1997 has been set at 0.0322% per day, which is equivalent to 11.75% per
annum. This figure will be reviewed in a six-monthly basis and may
be amended as deemed appropriate.
Prompt Payment of Accounts Act 1997 (Rate of Interest Penalty) Order 1997
EMPLOYMENT
New employment equality measures
New legislation relating to the workplace is expected it be brought into
force shortly. The new Act:
- outlaws both direct and indirect discrimination;
- outlaws discrimination in employment on nine distinct grounds: sex,
arital status, family status, sexual orientation, religion, age, disability,
race and membership of the traveling community;
- seeks to promote equality between employed persons on the nine grounds
stated above;
- addresses discrimination in the areas of: equal pay for work of equal
value, access to employment, vocational training, conditions of employment,
work experience, promotion and dismissal; and
- applies to: public and private sectors, employment agencies, vocational
training bodies, trades unions, professional bodies and the publication
of advertisements.
Employment Equality Act 1998.
Changes proposed to Sunday working
A private member’s Bill has been presented which aims to increase protection
for shop workers by making Sunday work optional as opposed to obligatory,
If passes, the Bill will:
- apply to shop businesses only;
- provide that an employee cannot be obliged to work on a Sunday without
his or her consent;
- prevent discrimination against employees who refuse to work on Sunday;
- provide that at least time and a half shall be paid to employees
who work on Sundays;
- ensure that the employer gives a minimum of four day’s notice of
the option to work before any one Sunday; and
- provide that the employee must give at least three day’s notice of
his or her non-availability on the following Sunday in default of which
the employer may assume that the employee consents to work on the Sunday;
- provide for application to a Rights Commissioner by an aggrieved
employee who may, if successful, be awarded a maximum of 10 weeks’ wages.
Protection of Workers (Shops) (NO.2) Bill 1997
Remedies for non-compliance with transfer of undertakings
rules
The transfer of undertakings rules contained in the Protection of Employment
Act 1977 and the European Communities (Safeguarding of Employees’ Rights
on Transfer of Undertakings) Regulations 1980 fail to provide adequate
remedies for non-compliance. In view of the judgments of the Court
of Justice if the European Communities this defect is likely to be held
to be contrary to EC law. A Bill has been introduced which will
provide, among other things, if passed:
- a mechanism for reference of disputes in this area to a Rights Commissioner
with a right if appeal to the Employment Appeals Tribunal:
- for an appeal or a reference on a point of law to the High Court;
and
- for a full range of compensatory remedies including re-instatement,
re-engagement or up to two years’ pay.
- Employment Rights Protection Bill 1997
Rest period exemptions granted
Persons employed in certain specified activities have been exempted from
the provisions of the Organisation of Working Time Act 1997 relating to:
daily rest, rest and intervals at work, weekly rest and nightly working
hours. The exempted activities, subject in some instances to certain
conditions, include:
- activities involving travelling “distances of significant length”
from home to workplace or from one workplace to another;
- security and surveillance;
- hospital work;
- mass communications media;
- emergency services;
- supply of utilities;
- collection of domestic refuse;
- industrial processes which cannot, for technical reasons, be interrupted;
and
- research and development.
Organisation of Working Time (General Exemption) Regulations 1998
Compensatory rest code of practice published
The Department of Enterprise, Trade and Employment has published a Code
of Practice on Compensatory Rest and Related Matters which is a code of
practice for the purposes of the Organisation of Working Time Act 1997.
The Code is available form the Department.
Organisation of Working Time (General Exemption is) Regulations
1998.
Additional information to be supplied to employees
The terms of Employment (Information) Act 1994 has been amended so that,
from March 1, 1998, any statement of terms and conditions of employment
under the Act shall include details of the times and duration of (and
any other conditions relating to) the rest periods aand breaks referred
to in the Organisation of Working Time Act 1997 that are being allowed
to the employee.
Terms of employment (Additional Information Order 1998
Lunch breaks for shop workers
With effect from Match 1, 1998, shop employees whose hours of work include
the period form 11:30am to 2:30pm shall, after six hours work, be allowed
a break of one hour, which must commence between those hours (provided
such commencement would not result in the break occurring at the end of
the working day).
Organisation of Working Time (Breaks at Work for Shop Employees) Regulations
1998
New leave entitlements for fathers and mothers
An Act was signed by the President on July 7, 1998 which grants a new
entitlement to men and women to avail of unpaid leave to enable them to
take care as follows:
- the leave applies to the parents of all children born after June
3, 1996;
- each parent will be entitled to 14 weeks leave for each such child;
- the leave must be taken before the child is five, subject to modifications
in the case of an adopted child
- the leave is not transferable between parents;
- it may be taken as a continuous block or, by agreement with the employer,
in separate blocks or by working reduced hours; and
- it is unpaid but is reckonable for the purposes of employment rights
other than superannuation.
The Act comes into force in December 3, 1998.
Parental Leave Act 1998
ENVIRONMENTAL
Ban of smoky coals extended
With effect from October 1, 1998, the ban on the sale of non-smokeless
solid fuels in certain areas of Dublin and Cork is amended, renewed and
extended to cover certain areas of Arklow, Drogheda, Dundalk, Limerick
and Wexford.
Air Pollution Act 1987 (Marketing, Sale and Distribution of Fuels) Regulations
1998
Information access rules set out
Regulations have been made with effect from May 1, 19998 which:
- set out the procedures for public access to information relating
to the environment held by public authorities
- provide certain grounds for refusal of information; and
- establish procedures for the processing of requests for information.
European Communities Act 1972 (Access to Information on the Environment)
Regulatons 1998
HEALTH & SAFETY
Food Safety Authority established
The food Safety Advisory Board has been abolished and a body to be known
as the Food Safety Authority of Ireland has been established with effect
from January 1, 1998, The functions of the new Authority include:
- the organisation and administration of a service to obtain and assess
information regarding the safety of food;
- advising the government;
- co-ordinating scientific co-operation with other EU Member States;
- managing food control and safety; and
- publishing reports.
Food Safety Authority of Ireland (Establishment) Order 1997
New rules for recreational boats
New Regulations relating to recreational craft:
- apply to boats, partially completed boats and certain components;
- prohibit, with effect from June, 16, 1998, the placing on the market
or putting into service of products not in compliance with the Regulations.
European Communities (Recreational Craft) Regulations 1998
Food hygiene rules tightened
With effect from April 1, 1998, new Regulations give effect to EU legislation
on the hygiene of foodstuffs, They include:
- an obligation on proprietors of food business to ensure that such
businesses are operated in a hygienic way;
- an obligation on proprietors to identify steps in the activities
of their businesses which are critical to ensuring food safety and to
ensure that adequate safety procedures are identified, implemented and
reviewed;
- specifications covering premises, rooms where food is prepared, foodstuffs,
transportation, equipment, food waste, water supply, personal hygiene
and training;
- equivalent conditions governing the bulk transport by ship of liquid
oils or fats; and
- a facility enabling the Minister for Health to approve Guides to
Good Hygiene Practice for voluntary use by food businesses as a guide
to compliance with the Regulations.
European Communities (Hygiene of Foodstuffs) Regulations 1998
New waste management regime
A series of new Regulations has been made which:
- prescribe the day on or after which further classes of waste disposal
and recovery activity require a waste licence in accordance with s.
39(1) of the Waste Management Act 1996;
- specify methods of labelling and disposal of asbestos waste, batteries,
accumulators, polychlorinated biphenyls (PCBs), waste oils and hazardous
wastes generally;
- prescribe the day on or after which the collection of waste oils
requires a waste collection permit;
- provide for the prosecution of offences and the making of waste management
plans; and
- amend certain provisions of the Waste Management Act 1996.
Waste Management Regulations 1998
INSURANCE
Tighter controls on companies related to insurers
With effect from 15 December 1997:
- the Minister for Enterprise, Trade and Employment is empowered to
seek information about related companies of insurance companies;
- the minister is also empowered to require auditors of those related
companies to inform the Minister of any material circumstances in such
a company likely to lead to a breach of the Insurance Acts and Regulations
in the insurance company; and
- the registered office of an insurer must be in the Member State of
its authorisation.
European Communities (Non-Life and Life Assurance) Framework (Amendment)
Regualations 1997
INVESTMENT
Interest and final repayment of government bonds to be separable
With effect form 1 January 1998, the Minister for finance is empowered
to designate existing and future Irish government bonds as “strippable”.
This term involves allowing the separate holding of the right to receive
each of the interest payments on a bond and the right to receive the final
principal repayment of a bond. It will be possible to purchase and
sell these rights separately and the stripping of bonds is to be carried
out at the discretion of the holder. The legislative basis for this
change is to be found in s, 5 of the National Treasury Management Agency
(Delegation of Functions) Order 1997
INTELLECTUAL PROPERTY
Improvements for copyright holders
An Act has been passed which:
- strengthens the presumptions in favour of copyright holders taking
civil actions on foot of copyright infringements;
- introduces indictable copyright offences it a maximum, on indictment,
of a fine of £100,000 and/or five years imprisonment.
Intellectual Property (Miscellaneous Provisions) Act 1998
LICENSING
Regulation of “bouncers” proposed
A private member’s Bill has been introduced which aims to regulate the
activities of “door supervisors” at licensed under the Public Dance Halls
Act 1935. The Bill proposes:
- the introduction of a register of door supervisors;
- a system of certificates of fitness, to be issued by the Garda Síochána,
to enable persons to be entered on the register;
- criteria for registration and a system of appeal relating to the
grant or refusal of such certificates;
- a prohibition on the employment of non-registered persons as door
supervisors in or about licensed premises; and
- a system of inspection to ensure compliance with the proposed legislation.
Door Supervisors Bill 1997
Opening hours to be extended
A private member’s Bill has been introduced which aims to:
- extend public house opening hours so that the year-round closing
time will be 12:30am (except Sunday);
- abolish the so-called “holy hour”, thereby permitting trading on
Sunday from 2:00pm to 4:00pm;
- allow Sunday trading from 12:30pm to 11:00pm;
- provide that St. Patrick’s Day no longer be treated as a Sunday for
the purposes of opening hours;
- abolish mandatory closing on Good Friday;
- allow off-licenses to sell non-alcoholic products from 7:30am; and
- to give to give al other licensed premises the same facility as public
houses in relation to drinking-up time and exemptions.
Licensed Premises (Opening Hours) Bill 1998
MONETARY UNION
Basis EMU measures introduced
An Act has been passed which:
- establishes the Euro as the currency of the State from January 1,
1999;
- removes incompatibilities between domestic monetary law and the EU
legal framework for the use of the Euro;
- facilitates companies wishing to redenominate their capital structure
into Euro before the final changeover to the Euro on January 1, 2002;
and
- provides for the design, issue and sale of commemorative legal tender
coinage.
Economic and Monetary Union Act 1998
PLANNING AND DEVELOPMENT
Measures proposed against rogue developers
A Bill has been introduced which, if passed, would:
- deny planning permission to an applicant if the applicant (or a connected
person) has failed to complete works which were a condition of the granting
of planning permission for a previous development by them; and
- allow the Minister for the Environment to regulate for the
provision of information by applicants in relation to previous planning
applications and whether or not they were completed in accordance with
the conditions attached to them.
Local Government (Planning and Development) Bill 1997
Traveller Accommodation
Legislation has been passed which aims to:
- provide that each major housing authority prepare and adopt a five-year
plan for the provision of accommodation for travellers in their area;
- provide that the adoption of such programmes will be a reserved function,
subject to control by the Minister for the Environment and Local Government;
- provide for public consultation;
- require housing authorities to take reasonable steps to secure the
implementation of the programme in their functional area;
- establish a National Traveller Accommodation Consultative Committee
to advise the Minister;
- provide for the establishment by each county council and borough
council of a local traveller accommodation consultative committee;
- extend statutory backing for the provision of financial support to
housing authorities and the voluntary sector for the provision and management
of traveller accommodation;
- enhance the powers available to housing authorities to control unauthorised
temporary dwellings in their area;
- amend the Local Government (Planning and Development) Acs 1963 -
1993 to ensure that development plans specifically include objectives
concerning the provision of traveller accommodation;
- provide that annual reports by local authorities address these issues;
and extend to halting-sites the powers available to local authorities
under the Housing (Miscellaneous Provisions) Act 1997, relating to anti-social
behavior.
Housing (Traveller Accommodation) Act 1998
New framework for urban renewal
An Act has been passed which:
- obliges local authorities to prepare “integrated area plans” for
the socio-economic and physical renewal of urban areas within their
functional areas;
- provides for recommendations to be made on the basis of such plans
relating to urban renewal reliefs; and
- clarifies certain powers and functions of the Dublin Docklands Development
Authority
Urban Renewal Act 1998
ROAD TRAFFIC
Road traffic levels to be reduced
A private members’ Bill has been introduced which aims to reduce the
volume of road traffic by:
obliging the Minister for the Environment and Local Government to produce
a National Road Traffic Reduction Plan detailing methods of achieving
year-on-year reductions in total traffic miles;
obliging the minister to make annual reports to the Oireachtas; and
obliging Roads Authorities to make similar plans.
Road Traffic Reduction Bill 1998
PROPERTY
Gazumping to be curbed
A private member’s Bill has been introduced which would, if passed:
- seek to prevent vendors, including builders, who have received a
booking deposit in relation to a residential property from selling it
to another purchaser for an increased price within a period after payment
of the booking deposit;
- set time limits for the furnishing of Contracts and the return of
same with contract deposit;
- provide for fines and imprisonment for persons breaching the provisions
of the legislation; and
- permit the award of compensation by the Court to disappointed purchasers.
TAXATION
VAT- free goods for tourists
New Regulations set out the conditions for granting relief form VAT on
goods bought by non-EU tourists visiting Ireland or Irish residents who
are departing the EU with the intention of taking up residence outside
the EU. The following conditions apply:
- the goods must be exported in the purchaser’s personal luggage or
put on board a ship or aircraft which is travelling to a non-EU destination;
- the export of the goods must take place by the end of the third month
following the on the of purchase;
- the purchaser must get the benefit of the relief within 25 working
days after lodging a valid claim; and
- the purchaser must be made aware of certain specified details concerning
the transaction .
- Value - Added Tax (Retail Export Scheme) Regulations 1998
Changes to stamp duty and rental income relief
Legislation was passed giving effect to the government announcement of
April 23, 1998 to the effect that:
- relief against rental income will no longer be available in respect
of interest on borrowed money employed on or after the date of the announcement
in the purchase, improvement or repair of residential premises (subject
to three exemptions);
- stamp duty on conveyances and leases is reduced where the consideration
does not exceed £500,000; and
- stamp duty is imposed ion new residential property where the purchased
is an investor.
Finance (No.2) Act 1998
VAT waiver rules changed
New Regulations, deemed to have come into effect on March 26, 1997:
- amend reg. 4 of the Value -Added Tax Regulations 1979 to provide
for the backdating of a waiver of exemption for VAT on short-term lettings
of immovable property in specified circumstances; and
- amend the same reg.4 to take account of the changes to VAT on property
contained in the Finance Act 1997 to s. 7(3) of the Value- Added Tax
Act 1972, which deals with the calculation of the amount due on the
cancellation of a waiver.
Identify cards for tax inspectors
As and from July 1, 1998, provision has been made (under s. 858
of the Taxes of the Taxes Consolidation Act 1997) for a new type of identity
card for officers of the Revenue Commissioners which will show the functions
and powers which the officer identified is entitled exercise. The
production of the card will be taken as evidence of the officer’s authorisation
for the purposes of the specified statutory provisions shown on the card.
TRANSPORT
Wheelchair taxis - new Regulations
New Regulations set out amended criteria for wheelchair accessible taxis
and clarify the powers of the Garda Commissioner in relation to the inspection
of taxis, wheelchair accessible taxis and hackneys. The requirements
include:
- accommodation for a person seated in a wheelchair;
- accommodation for at least three passengers in addition to the wheelchair
and its occupant;
- at least two doors allowing access to the area accommodating the
wheelchair;
- a ramp or other mechanism to facilitate safe access, with a gradient
of no more than 1:3:6;
- an unrestricted view of the taximeter for the wheelchair occupant,
who may be seated facing either forward or backwards; and
- an appropriate restraint system, including anchorage points for the
wheelchair and a lap belt for its occupant.
Road Traffic (Public Service Vehicles) (Amendment) Regulations 1998
Steps in small PSVs no longer required
The requirement for small public service vehicles to have a step fitted
in certain circumstances has been repealed. The new requirements
in this area are specified in the Road Traffic (Public Service Vehicles)
( Amendment) Regulations 1998, see above.
Road Traffic (Construction, Equipment and Use of Vehicles) (Amendment)
Regulations 1998
Road transport of dangerous goods to be changed
A Bill has been presented which aims to put in place enabling powers
for the making of regulations to:
- allow the State to accede to the European Arrangement concerning
the international carriage of dangerous goods by road;
- implement Directive 94/55/EC on uniform procedures for checks on
the transport of dangerous goods by road.
TRUSTS
New authorised investments for trustees
With effect from 9 March 1998:
- a new list of investments in which trust funds may be invested has
been established; and
- conditions to apply to the trust funds have been set out.
Trustees (Authorised Investments) Order 1998
UNIONS
Mandatory recognition of unions
A private member’s Bill has been introduced which will, if passed:
- introduce a conciliation mechanism, via the Labour Relations Commission,
to resolve disputes concerning the non-recognition by employees of trade
unions (widely defined to include staff associations and other bodies);
- in default of agreement, allow for the referral of such matters to
the Labour Court, where the key criterion will be whether the union
in question is representative of a substantial number or category of
employees (dealt with in s. 13);
- permit the Labour Court to make enforceable orders under the proposed
legislation;
- once a union is recognised, oblige an employer to negotiate with
it in accordance with statutory obligations; and
- provide that dismissal because of a recognition attempt is unfair.
NOTE:
This Business Law Update is not an exhaustive list. We have made
a selection of items of domestic legislation which we think might be of
interest to our commercial clients.
As this release is intended as a general guide to the subject matter,
it should not be used as a basis for decisions. For this purpose,
professional advice should be obtained which takes into account all the
client’s circumstances.
Every effort has been made to ensure the accuracy of the information in
this release. In view of its purpose, however, the reader will appreciate
that we are unable to accept any liability for any errors or omissions
which may arise.
CLIFFORD SULLIVAN & COMPANY provides a complete range of legal
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- Company Formation
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