Ireland has a robust framework of legislative protections and supports for workers who are impacted by redundancy. This includes:
• The Protection of Employment Act 1977, as amended, which requires employers in collective redundancy situations to consult with employees’ representatives and to notify the Minister for Enterprise, Trade and Employment before implementing redundancies.
• The 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.
• The 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,
• The 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.
It is the employer’s responsibility to comply with its obligations under the 1977 Act and there are robust mechanisms in place to ensure compliance. An employer who fails to initiate consultations and provide information to employee representatives or to 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 not exceeding €250,000. The Workplace Relations Commission (WRC) is the statutory agency responsible for bringing such prosecutions.
The 30-day reference period and thresholds set out in legislation are in line with the majority of other Member States and I am satisfied that they are sufficient in achieving the objective of ensuring employees are consulted with and provided with relevant information. Any proposed change would require consultation with employee and employer representative groups and careful consideration would have to be given to avoid potential unintended consequences.
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 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.
If employees believe their employment rights as outlined above have been breached, they have the right to refer complaints to the WRC for an adjudication and compensation where appropriate.
Statutory redundancy is a lump-sum payment based on an employee’s pay and length of service. An eligible employee is entitled to two weeks' pay for every year of service plus one additional week's pay. Weekly pay is capped at €600 per week.
Any proposed changes to the minimum statutory redundancy payment would have to be considered in the overall policy and budgetary context. Consultation with employer and employee representative groups and other relevant stakeholders would also be required.
Finally, the State also supports workers who face job losses through the Intreo service of the Department of Social Protection, which can assist with income supports and training and employment opportunities.
