I propose to take Questions Nos. 265 to 267, inclusive, together.
The Collective Agreement on enhanced redundancy payments agreed between the Department of Public Expenditure and Reform and the Public Services Committee of the Irish Congress of Trade Unions applies to redundancies in the education sector and my Department has directed third level institutions accordingly. The Collective Agreement provides that public servants who accept an ex gratia redundancy payment will not be eligible for re-employment in the Public Service for a period of two years from termination of the employment. The Agreeement also explicitly states the rates at which redundancy is to be paid (see attached copy provided for information). The Agreement comprehends permanent staff, those on contracts of indefinite duration and fixed-term staff in continuous employment for more than two years, including research staff. Employers are required to notify my Department and obtain sanction before the Collective Agreement is offered to any staff member affected by a redundancy event.
Collective Agreement: Enhanced Redundancy Payments to Public Servants
Under the Public Service Agreement 2010–2014 the parties have agreed that Public Service numbers will be reduced in accordance with Government policy on public service numbers, as implemented through Employment Control Frameworks. To that end, the Agreement states (paragraph 1.5) that, where the circumstances require it, the Government may offer voluntary mechanisms to exit the public service, whether generally or in specific sectors, bodies, locations or services.
The Agreement includes a commitment (paragraph 1.6) by public service management that compulsory redundancy will not apply within the Public Service; however this is subject to some key qualifications, namely that it is subject to compliance with the terms of the Agreement, in particular on flexibility on redeployment. There is a saver for circumstances “where existing exit mechanisms apply”. There are established practices for making public servants redundant in appropriate circumstances, on the expiry of employment contracts or where redundancy terms have been agreed or generally applied1.
It has been agreed on behalf of the Department of Public Expenditure and Reform and the Public Services Committee of ICTU that the following will apply, with effect from 1 June 2012, on the redundancy of a public servant as defined under the Financial Emergency Measures in the Public Interest Acts 2009–20112 or group or class of public servants3:
- Any ex gratia payment will amount to no more than 3 weeks pay per year of service, subject to the total statutory redundancy and ex gratia payment not exceeding either 2 years’ pay or one half of the salary payable to preserved pension age, whichever is less;
- In accordance with the provisions in the Redundancy Payments Acts 1967 - 2007, public servants in employment for less than 2 years [104 weeks] are not eligible for a severance payment (statutory or ex gratia);
- A Public Servant will be advised in writing prior to acceptance of the ex gratia payment that s/he will not be eligible for re-employment in the public service by any public service body (as defined by the Financial Emergency Measures in the Public Interest Acts 2009– 2011) for a period of two years from termination of the employment. Thereafter the consent of the Minister for Public Expenditure and Reform will be required prior to re-employment. This declaration will also include an authorisation that their information (PPS number and details) can be used by their employer or any other public service body for the purposes of monitoring compliance with this provision.
This collective agreement will be reviewed from time to time in light of the prevailing economic and fiscal conditions.
1The Implementation Body established under the Agreement has noted [17 February 2012] that it was not intended that these practices would be superseded by the Agreement.
2Including public servants employed for a fixed term, meeting the criteria for redundancy under the Redundancy Payments Acts 1967 to 2007 and to whom a redundancy payment is required to be paid in accordance with the Protection of Employees (Fixed Term Work) Act 2003.
3A public service employer may seek the sanction of its parent Department and the Department of Public Expenditure and Reform to make a collective agreement with a body representing relevant employees that varies some or all of the terms of this agreement. The redundancy arrangements specified under DES Circular 0058/2006 are unaffected by this collective agreement.
