JLC agreements in agricultural employment
In particular, there has been media coverage of electrical contractors being obliged to pay their staff at rates which were more suitable to the boom times than to the current economic reality.
In Ireland, some employments are covered by agreements made by Joint Labour Committees (JLCs). The purpose of Joint Labour Committees is to regulate conditions of employment and set minimum rates of pay and conditions in certain sectors.
The agreements set up by the Joint Labour Committees are know are “Registered Employment Agreements”. There are many Registered Employment Agreements, covering many different industries from shirt making to hairdressing, construction to agriculture.
For agricultural workers, the Registered Employment Agreement provides rights to workers which are above the minimum legal rights. The simplest example of this is in relation to rates of pay. Since January 1, 2010, adult workers employed in the agricultural sector are entitled to €9.10 per hour, even though the minimum wage has now been restored to €8.65. There is a reduced rate for workers in training.
Working in agriculture is given a fairly broad definition and includes horticulture, production of any consumable produce, care of animals, dairy farming, poultry farming, use of land as grazing, and any other incidental activities connected with agriculture.
Additionally, there are provisions included in the Registered Employment Agreement covering the length of a normal working week, overtime and the rate at which it is to be paid, and provisions covering sick pay (once the employee has worked for more than 12 months), and also holiday leave and payment in lieu of holiday leave.
Farming is treated very much like any other business from an employer regulations point of view, and it would be wise to ensure that all employees are hired under a formal contract, where the conditions of the employment are clearly set out. This can protect both the employer and the employee. It is also a legal requirement to have such an employment contract.
From a tax perspective, casual employments are a no-no from a tax liability but also a legal liability point of view. When taking on an employee, it would be wise to ensure that all the legal and tax requirements, including employer’s insurance, health and safety statement, employment contract, and registration of the employee with Revenue are in place.
It adds to the cost and hassle of employing someone, but gives peace of mind in these times of increased Revenue activity.
Finally, each person’s circumstances should be looked at for the best advice. As always, your questions on this and other farming issues are welcome.
