The Protection of Employment Act 1977 imposes certain legal obligations on employers proposing collective redundancies. These obligations include engaging in an information and consultation process of at least 30 days with employees’ representatives, and to notify the Minister for Enterprise, Trade & Employment of the proposals at least 30 days before the first dismissal takes place.
The consultation with employees’ representatives should include the possibility of avoiding the proposed redundancies, reducing the number of employees effected or mitigating their consequences.
Where an employee has been made redundant, they may be entitled to a redundancy payment. Under the Redundancy Payments Act 1967, it is the employer’s responsibility to pay statutory redundancy to eligible employees.
In order to qualify for a statutory redundancy payment, an employee must have 104 weeks' continuous employment, be an employed contributor in employment which was insurable for all benefits under the Social Welfare Acts, and be over the age of 16.
During the consultation period, employers and employees may negotiate and agree to enhanced redundancy payments, which may be in excess of statutory redundancy entitlements including for employees who would not be eligible for statutory redundancy due to their length of service with the employer. Such arrangements are a matter between the employer and the employees concerned.