Dáil Éireann Debate, Wednesday - 27 May 2020
945. Deputy Joe O'Brien asked the Minister for Employment Affairs and Social Protection if guidelines have been developed in relation to the temporary lay-offs due to Covid-19; if there is a time limit on the length of time for temporary lay-offs; and if guidance is being developed for employers and employees on exiting the temporary lay-off situation. [7427/20]
View answerThe existing provisions of the Redundancy Payments Act 1967 (as amended) outline the obligations and rights of employers and employees in situations of temporary lay-offs for the purposes of redundancy entitlements.
An employee is considered to have been laid off where the employment ceases because their employer is unable to provide them with work, it is reasonable for the employer to believe the cessation is temporary and the employer gives the employee prior notice to that effect.
The provisions of Section 12 of the Act provide that an employee who has been temporarily laid-off or kept on short-time for four consecutive weeks, or for a series of six weeks within a thirteen week period of which not more than three are consecutive has an entitlement to claim redundancy from their employer.
These provisions were not considered adequate to deal with the current emergency situation. As a result of Covid-19, there have been immediate and unprecedented volumes of temporary lay-offs and short-time work and there is a very real potential for these situations to become protracted. Under the existing provisions these lay-off and short-time situations could result in a large number of redundancies in a very short period of time. Employers are obliged to pay redundancy entitlements to employees who have been temporarily laid off after the periods of time currently provided for in Section 12.
In the current emergency situation the existing timelines set out in Section 12 of the Act would have serious unintended and detrimental financial impacts on businesses and employees over a short period of time. Significant numbers of redundancies over a short period of time would have an adverse impact on the potential for a business to recover, which in turn would create many insolvency and bankruptcy situations. This will only exacerbate the risk of further job losses. Measures to assist the ongoing attachment between employees and their employer during the crisis is important.
For these reasons emergency legislation has been enacted by way of Section 29 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 to mitigate against the risks to businesses outlined above and to protect for as long as possible the attachment to employment for employees.
The existing provisions of Section 12 have effectively been suspended during the emergency period, from 13th March 2020 to 31st May 2020, in respect of an employee who has been laid off or kept on short time due to the effects of measures required to be taken by the employer in order to comply with, or as a consequence of, Government policy to prevent, limit, minimise or slow the spread of infection of Covid-19.
The extension of the end date of the emergency period is provided for in legislation and an extension is currently being considered. In considering whether the end date will be extended, the Government will have regard to the principles which are set out in Section 29 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 and in particular the need to mitigate against the increased risk of insolvencies in the event of mass redundancies over a short period of time resulting in permanent job losses. The government will also have regard to the timelines set out in the Roadmap to re-open Society and Business.
It is important to note that an employees’ right to claim redundancy after a temporary period of lay off or short-time work has not been removed, rather it has been deferred for a temporary period in this emergency situation.
There are no specific guidelines in relation to exiting temporary lay-off situations, however employers are expected to keep up to date contact details of their employees in order to advise them of their date of return to work or the continuation of the lay-off. The Workplace Relations Commission’s Customer Service Section can provide further information in relation to the rights and obligations of employees and employers respectively under employment rights legislation and can be contacted on 1890 80 80 90.
