New Minimum Wage: case in front of the Labour Court.
The case of the five housekeeping staff of a very well know Dublin hotel had their case heard in the Labour Court today over their refusal to sign up to new terms of employment reducing their hourly salary from the 2010 minimum wage rate of €8.65 back to the newly introduced minimum wage, €7.65
On 1st February the previous government approved the 12% reduction of Ireland’s minimum wage from 8.65 to €7.65.
It is understood that the about 40 of their colleagues had already signed the new terms but the 5 individuals who were members of SIPTU had about 6 years service with the hotel, refused to sign these new terms as they said they could not afford to do so.
The Labour Court found in their favour, suggesting that the hotel management had not provided sufficient financial evidence to support such action and ordered for the 5 workers to be reinstated and for their pay rates to be restored.
However the Labour Court did remind employers that any new employees can be started on contracts at the lower rate, but rates should not be reduced for existing employees.
This case will no doubt have further inplications for many other employers who were reviewing the new minimum wage.
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