Ireland has a robust framework of legislative protections and supports for workers who are impacted by redundancy. This includes:
• Protection of Employment Act 1977, as amended, which implements EU Directive 98/59/EC and requires employers in collective redundancy situations to consult with employees’ representatives and to notify the Minister for Enterprise, Trade and Employment before implementing redundancies.
• Redundancy Payments Act 1967, as amended, which requires employers to pay statutory redundancy payment to eligible employees with more than two years’ service. Employers are also required to give at least two weeks’ notice under this Act before implementing a redundancy, distinct from any other statutory or contractual rights to minimum notice.
• Minimum Notice and Terms of Employment Act 1973, as amended, which obliges employers to give a certain level of notice to employees prior to dismissal, with the length of such notice depending on the employee’s length of service,
• Unfair Dismissals Act 1977, as amended, which protects employees with more than one year’s service from Unfair Dismissals.
The Protection of Employment Act 1977, as amended, defines a collective redundancy as where, during any period of 30 consecutive days, the employees being made redundant are:
• 5 employees where 21-49 are employed,
• 10 employees where 50-99 are employed,
• 10% of the employees where 100-299 are employed,
• 30 employees where 300 or more are employed.
Where redundancies occur which are outside the parameters of collective redundancies, employers are still legally obliged to conduct the redundancy process fairly and to use a reasonable selection criteria in choosing to make people redundant. In accordance with the principles of fair procedures and natural justice, any such process should normally include a consultation with potentially affected employees.
Employees have a right to make a complaint to the Workplace Relations Commission (WRC) under a wide variety of employment legislation. Where a complaint is upheld, the WRC may award redress or compensation.
For example, if an employee believes a genuine redundancy has not occurred or that they were unfairly selected for redundancy, it is open to them to make a complaint to the Workplace Relations Commission (WRC) under the Unfair Dismissals Act 1977, as amended. If the WRC upholds the complaint, the employee may be reinstated, re-engaged or awarded up to 2 years’ remuneration as compensation for unfair dismissal.
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 Protection of Employment Act 1977. 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.
Legislative provisions governing redundancy entitlements and obligations represent a very measured and balanced position for both employees and employers. As is the general practice with changes to employment law, consultation with both employer and employee representative groups is necessary for any amendments to legislation.
