10/05/2013

IBEC 'Devastated' At Supreme Court Judgement On REAs

IBEC said that the Supreme Court judgment on Registered Employment Agreements (REAs) was a devastating blow to all REAs made prior to 2012, and created major question marks over the legal status of REAs agreed after the Industrial Relations (Amendment) Act 2012, which amended the legal basis for such agreements.

It is now unclear whether new REAs can be made under the existing 2012 legislation. IBEC called on the government to provide legal clarity for employers, in light of the judgement.

IBEC Director Brendan McGinty said: "The judgement not only raises questions as to the legal status of recently agreed REAs, it also calls into question the separate and revised JLC system and adds weight to the argument that the JLC system should be abolished entirely. Any attempt to reform the JLC system would be fraught with constitutional uncertainty and would be open to legal challenge."

Whilst calling for the abolition of JLCs is a long-standing demand, IBEC has been broadly supportive of the Government's efforts to reform the REA system.

(CD)

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