Firstly, I wish to acknowledge the difficult time that the travel industry is currently facing. Many sectors and industries have been badly affected during the emergency period and my sincere thoughts are with all employers and employees in these situations at this time.
Much of our focus since March was to try to ensure that employees were not laid-off and did not lose that all important link with their employer – as experience shows that the maintenance of the link with an employer is critical to the prospects of a person resuming that employment. Budget 2021 will help companies deal with Covid-19 and provides for additional supports tailored to those sectors who are most in need. The new CRSS programme will provide closed or effectively closed business a payment based on their turnover up to €5,000 per week. This will make a really big difference and will be paid in addition to the Employment Wage Subsidy Scheme.
In March 2020 the Government introduced an emergency amendment to the Redundancy Payments Act 1967 which effectively suspends an employee’s entitlement to claim redundancy from their employer following certain periods of lay-off or short-time work due to Covid-19. The Government was concerned that the financial impact of significant redundancy claims at this time would have a serious impact on the potential for businesses, and the economy as a whole, to recover which in turn could result in significant insolvency and bankruptcy situations, with further permanent job losses. The decision to extend this emergency measure to 30th November was a difficult one. I know many employees who have been laid off are experiencing great uncertainty.
Apart from the above measure all other existing redundancy provisions remain unchanged and in force. If an employer is in a position where they have to make employees redundant the employer is obliged to comply with existing provisions and employee protections such as notice periods and the payment of a redundancy lump-sum to eligible employees.
In situations where an employer has to make staff redundant but their business cannot sustain the cost of redundancy payments either due to financial difficulties or insolvency, the Department of Social Protection provides a safety net for employees and can make the statutory redundancy payment to eligible employees from the Social Insurance Fund on behalf of the employer. The employer does not have to be insolvent for such a payment to be made. When a redundancy payment is made from the Social Insurance Fund a debt is raised against the employer. That Department will engage with employers to establish their financial situation on a case by case basis and will seek to recover the debt on a mutually agreed, phased basis, repaying by instalment, as appropriate.
Finally, the Workplace Relations Commission is the organisation mandated to secure compliance with employment rights legislation and it remains fully operational. If employees have concerns or complaints regarding their employment rights they should contact the WRC directly on their telephone helpline at 1890 808090. Further information is also available at www.workplacerelations.ie.
