In March 2020 the Government introduced an emergency amendment to the Redundancy Payments Act 1967 which effectively suspends an employee’s entitlement to claim redundancy from their employer following certain periods of lay-off or short-time work due to Covid-19. The Government was concerned that the financial impact of significant redundancy claims at this time would have a serious impact on the potential for businesses, and the economy as a whole, to recover which in turn could result in significant insolvency and bankruptcy situations, with further permanent job losses.
The decision to extend the emergency measure to 30th November was a difficult one. I know many employees are experiencing great uncertainty but the Government had to consider the need to ensure businesses survive, which in turn ensures further permanent job losses are avoided as much as possible.
The matter of a further extension is currently under consideration. In its deliberations the Government will have regard to the social partners’ views, the criteria and principles underpinning the emergency provision and the public health and labour market situations.
There is no provision to limit the application of the emergency measure to specific business sectors.