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Redundancy Payments

Dáil Éireann Debate, Wednesday - 20 September 2023

Wednesday, 20 September 2023

Questions (224)

Neasa Hourigan

Question:

224. Deputy Neasa Hourigan asked the Minister for Enterprise, Trade and Employment his plans to strengthen enforcement mechanisms within existing redundancy laws to ensure they are adhered to by employers; and if he will make a statement on the matter. [39623/23]

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Written answers

The Protection of Employment Act 1977, as amended, sets out a number of protections for employees where collective redundancies are proposed. It is the employer’s responsibility to comply with its obligations under the Act.

There are robust mechanisms in place to ensure employers comply with their obligations under the Act.

Firstly, employees can make a complaint to the Workplace Relations Commission (WRC) if they believe their employer has failed to undertake a consultation or to provide information to the employees’ representatives. If the WRC upholds the complaint, employees may be awarded up to four weeks’ remuneration for each breach of the Act.

Secondly, the Act makes it an offence for an employer to fail to comply with their legal obligations. An employer who fails to initiate consultations, provide information to employees’ representatives or notify the Minister is guilty of an offence and will be liable on summary conviction to a fine not exceeding €5,000. An employer who dismisses employees before the expiry of the 30-day period following notification to the Minister is guilty of an offence and will be liable on conviction on indictment to a fine of up to €250,000. The WRC is the statutory agency responsible for bringing such prosecutions.

In May 2023, Minister Calleary and I announced that Government approved the priority drafting of the Plan of Action on Collective Redundancies following Insolvency Bill 2023. Among the changes announced in this legislation includes providing further mechanisms for employees to seek redress under the Act. This change will extend employees’ right to make a complaint to the WRC if they are made redundant prior to the expiry of the 30-day period after the Minister is notified of the proposed collective redundancies.

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