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ARTICLE · 17 OCTOBER 2023

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Mechanical Engineering SEO Struck Down By The High Court

William Fry LLP
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An order quashing a 2018 Sectoral Employment Order (SEO) for the Mechanical Engineering Building Services Contracting Sector, was granted by the High Court on 10 October 2023.

IrelandEmployment and HR
Jeffrey Greene
Jeffrey Greene
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An order quashing a 2018 Sectoral Employment Order (SEO) for the Mechanical Engineering Building Services Contracting Sector, was granted by the High Court on 10 October 2023.

The challenge to the SEO was brought by Allbrite Electrical and Mechanical Limited, along with the employer body APHCI. The challenge was based on a separate 2021 Supreme Court ruling of ultra vires in relation to similar pension provisions to those in the SEO.

Acting Ultra Vires

The SEO included a provision that workers "shall be entered by his or her employer into a pensions scheme the terms of which, including both employer and employee contribution rates, shall be no less favourable than those set out in the Construction Workers' Pension Scheme". A similar provision was found by the High Court, and Supreme Court in 2021, to be ultra vires in a separate challenge to a different SEO. In that case it was found that the provision essentially abdicates the function of setting the rate of

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