Employment agreements and orders

Employees in a particular sector (such as construction or security), and workers who are represented by a trade union, sometimes have their working conditions set out in a particular employment agreement or employment order.

If you are covered by an employment agreement or order, the details may be included in your contract of employment.

An Employment Regulation Order (ERO) sets the minimum rates of pay and conditions of employment for workers in a particular sector.

There are currently 3 EROs in operation, including for the:

• Contract cleaning sector (effective since 1 June 2024)
• Security sector (effective since 1 July 2024)
• Early learning and childcare sector (effective since 24 June 2024)

Employers must pay the wage rates and provide the employment conditions set out in the ERO. They cannot give less favourable wages or conditions than those in the ERO.

If your employment conditions are covered by an ERO, there must be a notice on display in the workplace, explaining the terms of the ERO.

You can report any breaches of an ERO to the Workplace Relations Commission (WRC).

EROs and minimum wage

Even if the hourly pay rates are set out in an Employment Regulation Order (ERO), an employer must pay their employees at least the legal minimum wage.

How an ERO comes into effect

The ERO proposal is drawn up by a Joint Labour Committee (JLC). The JLC can be set up to agree on rates of pay and conditions of employment for vulnerable workers in sectors that are not otherwise represented.

Then, the JLC’s proposal must be adopted by the Labour Court. If adopted by the Labour Court, the Minister for Enterprise, Trade and Employment will sign an ‘Order’, giving the proposal statutory effect.

A Registered Employment Agreement (REA) is a collective agreement between a trade union and an employer. It can also be an agreement between multiple unions and multiple employers (or an employers’ organisation). The agreement is reached through collective bargaining, which means each side voluntarily engages in the negotiations.

An REA sets out the pay and employment conditions of the workers covered in the agreement.

Once an REA is registered with the Labour Court, it becomes binding (compulsory) for the parties involved (for example, the worker, employer and trade union).

All REAs must include a disputes procedure, which all parties to the agreement must keep to. You can refer any breaches of an REA to the Workplace Relations Commission.

The law on REAs is set out in the Industrial Relations (Amendment) Act 2015.

The Labour Court keeps a register of employment agreements, as required by Section 8 of the Act.

A Sectoral Employment Order (SEO) can set the pay, pension or sick pay scheme for workers in a particular sector, such as construction. The law on SEOs is set out in the Industrial Relations (Amendment) Act 2015.

The SEO has a dispute resolution procedure. It requires employees to raise individual disputes with their employer, at local level, first. The employer must respond within 5 working days. If it is not resolved, the dispute can be referred to the Workplace Relations Commission (WRC). WRC decisions can be appealed to the Labour Court.

SEOs currently in place

The Sectoral Employment Order (Mechanical Engineering Building Services Contracting Sector) 2018 (pdf) sets the statutory minimum rates of pay for workers employed in the Mechanical Engineering Building Services Contracting sector. It also sets other conditions, for example, sick pay and pension entitlements.

The Sectoral Employment Order (Construction Sector) 2023 came into operation on 18 September 2023 and was updated on 5 August 2024. The order fixes the statutory minimum rates of pay for craftspeople, construction operatives and apprentices employed in the construction sector. It also sets other conditions, for example, sick pay and pension entitlements.

Under the Sectoral Employment Order (Construction Sector) 2024 the minimum rates of pay will increase by:

• 3.4% in August 2025
• 3.2% in August 2026

How an SEO comes into effect

An SEO begins as a request to the Labour Court to review issues such as the pay, pension or sick pay scheme for workers in a particular sector.

The request to the Labour Court can be made separately or jointly by organisations that substantially represent employers or workers, such as a trade union.

Then, the Labour Court can recommend the Minister for Enterprise, Trade and Employment to make an SEO. When the Minister signs an SEO, the Labour Court’s recommendations become legally binding across the sector.

You can get more information on the Workplace Relations Commission website about:

• Employment Regulation Orders
• Registered Employment Agreements
• Sectoral Employment Orders

You can also contact the WRC’s information and customer service.