New regulations signed into law last April have imposed significant duties and obligations on manufacturers and distributors to ensure that any product they supply is safe. The European Communities (General Product Safety) Regulations, 1997 aim to make sure that only safe products enter the Irish marketplace. They apply to any consumer product whether new, used or reconditioned. They do not, however, apply to antiques or products that need to be repaired before use (provided the supplier makes that clear to the potential purchaser).

Duties of producers

A 'producer' is defined as the manufacturer, his representative or the importer of the product if the manufacturer operates outside the EU. Among other things, the producer is obliged to give consumers sufficient information so that they can assess the inherent risks in a particular product. Producers must also make sure that they themselves are aware of the risks posed by their products so that they can take appropriate action (including taking the product off the market). They must also mark their products so they can be identified, carry out sample testing and keep distributors informed about any risks.

Duties of distributors

For their part, distributors are obliged to act with due care to ensure that any product they supply is a safe product.

In addition, they are now obliged to monitor products they place on the market and to inform the producer and consumers of any defects or risks of which they become aware.

Under the new regulations, the Director of Consumer Affairs is given the power to ensure that both producers and distributors fulfill their obligations.

What is a safe product?

Several factors have to be taken into consideration in determining the safety of a product. These include:

• The characteristics of the product, including its composition, packaging, instructions for assembly and maintenance
• The effect on other products, where it is reasonably foreseeable that it will be used with other products
• The presentation of the product, its labelling, any instructions for its use and disposal
• The categories of consumers at serious risk when using the product, in particular children.

For further information please contact Hugh Garvey.

Environmental law is increasingly becoming a feature of Irish legislation. In July last year, the Waste Management (Packaging) Regulations, 1997 came into effect. Like most Irish environmental legislation, these regulations were introduced to fulfil Ireland's obligations as a European Union member and were implemented to achieve the targets for the recovery of packaging waste established by an EU directive. The regulations place the responsibility for achieving the targets set by the directive on all companies that produce and handle packaging at all stages of the distribution chain. Particularly onerous obligations are imposed on 'major producers' who are defined as persons who:

• Supply packaging materials and packaged goods to the Irish market, and
• Are retailers, packers, fillers, distributors, handlers or manufacturers, and
• Place annually more than 25 tonnes of packaging (other than packaging destined for reuse) onto the Irish market and have an annual turnover of more than IR£ 1,000,000.

Major producers must either register with the local authority and implement steps to assist the recovery of packaging waste or participate in a packaging waste recovery scheme operated by an approved body.

REPAK Limited is at present the sole approved body for the purpose of the regulations. It operates a packaging waste recovery scheme which offers membership to all companies involved in the packaging chain. REPAK will discharge the industry's obligation on a collective basis so that individual companies will not be obliged to report to the local authority.

If a major producer is not a member of REPAK, the regulations provide that the company must implement measures to help with the recovery of packaging waste. The regulations set out a number of measures which, among other things, say that the major producer must:

• Display a sign on the premises, in the form provided by the regulations, notifying the public that the producer is required to accept on the premises, free of charge, packaging of a type or brand sold or otherwise supplied on the premises.
• Provide adequate facilities at each premises for the acceptance, segregation and storage of packaging waste. Provide facilities whereby customers may remove or deposit packaging from substances or products purchased at the premises.
• Arrange, if so requested, the collection from any producer to whom the major producer supplies packaging material, packaging products of a type or brand supplied by the major producer.
• Ensure that the collected packaging waste is recovered or sent to a recovery operator.

The obligations imposed by the Waste Management (Packaging) Regulations will give rise to significant costs for major producers of packaging. Affected companies should consider ways to reduce the volume of packaging used to avoid the ambit of the regulations. If it is not possible to reduce the volume of packaging, companies should consider whether it is more economical to join REPAK or to implement individual measures to comply with the regulations.

For further information please contact the Property Department.

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Liability for injuries sustained by someone who comes onto your property -because of the state or condition of that property - has become an ever-increasing problem for occupiers. This has led to spiralling public liability premiums for occupiers. Since the enactment of the Occupiers' Liability Act, 1995, however, an occupier is in a position to restrict the duty of care which he owes to visitors to his property. But, to date, many occupiers have failed to avail of this, perhaps through unfamiliarity with this change in the law.

Under the Act, an occupier owes a general duty to visitors to take such care as is reasonable to ensure that they and their property do not suffer injury or damage by reason of any danger existing on the premises. An occupier may now, pursuant to section 5(1) of the Act, restrict by notice the level of duty which he owes to visitors to his property by specifying in the notice that the duty which he owes to them is the lesser duty not to injure visitors intentionally or to damage their property intentionally.

The occupier must take reasonable steps to bring such a notice to the attention of visitors to his property. It would be prudent to display the notice prominently at the normal means of access to the property. Warnings which are enough to enable a visitor, by having regard to the warning, to avoid injury or damage may also absolve an occupier from liability.

For further information please contact Michael Kavanagh.

The Developing Companies Market (DCM) of the Irish Stock Exchange was launched in February last year. Three companies have now been quoted or have applied for permission to be dealt on it. This experience is in marked contrast to that of the London Stock Exchange's Alternative Investment Market (AIM), which was launched in 1995 and where approximately 300 companies have been listed.

Companies seeking a quotation on the DCM must have a one-year track record evidenced by one year's audited accounts, and during the period covered by the accounts, must have an independent business which is revenue earning. In exceptional circumstances, the Stock Exchange may consider applications from companies whose revenue earning activity covers a shorter period. There is no corresponding minimum track record requirement for a quotation on AIM.

Other relevant entry requirements are that the directors of the applicant company must collectively have appropriate expertise and experience for the management of its business and that at least 10% of the shares to be quoted must be in public hands.

A company applying for admission of its shares to the DCM must prepare an admission document in accordance with the DCM rules which must be approved in advance by the Irish Stock Exchange. A company may bring its shares to the DCM, inter alia, by way offer for sale, offer for subscription, placing or introduction.

Once quoted on the DCM, companies are subject to the continuing obligations set out in the DCM rules, including an obligation to keep the market informed of all material information relevant to the value of the shares and to publish annual and interim accounts. It is intended that DCM companies would not be subject to the more onerous requirements imposed on companies quoted on the official list of the Irish Stock Exchange.

A DCM quotation, in addition to providing access to capital markets for expanding companies, may also be a preparatory step to a listing on the official list or on an international market. Application for admission to the DCM may also be accompanied by an application for listing on AIM as in the case of the companies that have been listed on the DCM to date.

Critical to the success of the DCM will be its ability to attract companies which will be capable of expanding rather than viewing a DCM quotation as a once-off source of finance or as an exit mechanism for existing venture capital or BES investors. Long-term investor confidence and, most importantly, institutional support will be dependent upon achieving a critical mass of DCM companies necessary to enable the DCM to meet the challenges created by the move towards consolidation of European stock exchanges arising out of European Monetary Union.

For further information please contact Emmet Scully.

The Organisation of Working Time Act, 1997 sets out statutory rights for employees in respect of rest, maximum working time and holidays. Its provisions have far reaching consequences both for workers and their employers.

There is now no qualifying period for holidays and all employees, regardless of status or service, qualify for paid holidays. Under the Act, the minimum holiday entitlements for employees will be increased on a phased basis from the leave year 1997/1998 to the leave year 1999/2000. The minimum holiday entitlements for employees who work at least 1,365 hours a year will be increased from three weeks to four weeks over the period with pro rata increases for the employees starting in the 1997/1998 leave year.

Maximum weekly working time

From 1 March 1998, the new maximum average working week is 48 hours (subject to a phase-in period). The Act outlines conditions under which the 48 hour average limit may be exceeded for the first two years of the operation of the legislation. From 1 March 1998, employees will be permitted to work up to 60 hours and in the second year (1999) 55 hours will be permitted.

The Act also provides that from 1 March 1998 every employee is generally entitled to:

• 11 hours' daily rest per 24 hour period
• One period of 24 hours' rest a week preceded by a daily rest period (11 hours)
• Rest breaks: 15 minutes where up to four and a half hours have been worked and 30 minutes where up to six hours have been worked (which may include the first break)

Zero hours contracts

Zero hours contracts arise where employees are required to be available to work for a certain number of hours in a week or as and when the employer requires them or a combination of both. The Act provides that if employees are not required to work 25% of the time they are contracted to make themselves available for, they will be entitled to be paid for 25% of the time which they are required to be available or 15 hours, whichever is the lesser.

Sunday premium

If not already included in the rate of pay, employees are entitled to supplementary payment for Sunday which will be equivalent to the closest applicable collective agreement which applies to the same or similar employment and which provides for a Sunday premium. The premium can be in the form of: added payment; time off in lieu; a portion of shift premium; and an unsocial hours premium.

Employers are obliged to keep records of holidays and public holidays for a period of three years. These records must be available for inspection by Labour Inspectors of the Department of Enterprise, Trade and Employment. Failure to comply is an offence. While workers will welcome the implementation of the Act, employers are faced with having to alter their systems of work and manage the increased paperwork to comply with its provisions.

For further information please contact Michael Kavanagh.