The Department of Enterprise, Trade and Employment (Department) approved and published the Sectoral Employment Order (Construction Sector) 2024 (Order) on 7 November 2024. What do you need to know?

When will the Order take effect?

The Order will come into operation on 1 August 2025. Further rises will then come into effect from 1 August 2026. It amends the previous Sectoral Employment Order (Construction Sector) 2021 as previously reported on by William Fry (here) and the previous Sectoral Employment Order (Construction Sector) 2024 as previously reported on by William Fry (here).

To whom will the Order apply?

The Order will apply to workers in the construction sector including craft persons, construction operatives and apprentices.

The Order follows a Labour Court Recommendation. Such recommendations form part of the Sectoral Employment process as a statutory wage-setting mechanism based on the principles of collective bargaining.

Effects

The Order will create new statutory minimum pay, pension and sick pay entitlements for workers in the construction sector including craft persons, construction operatives and apprentices.
These pay increases have the potential to negatively impact the cost of development projects or works. Depending on how risk has been allocated under a construction contract, development agreement or agreement for lease envisaging works, this cost increase may be borne by either the developer or the contractor.

Contact Us

For more information or advice on how this impacts projects and construction contracts or forward sales, funding, acquisition of developments or works, please contact Cassandra Byrne, Jarleth Heneghan, Alicia Compton or your usual William Fry contact.