Introduction
Redundancy situations generally occur where you lose your job due to
circumstances such as the closure of the business or a reduction in the number
of staff. Redundancy may
also arise due to the financial position of the firm, lack of work,
re-organisation within the firm or it may be closing down completely.
Collective redundancies arise 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
Redundancy Panel
Under the Protection
of Employment (Exceptional Collective Redundancies and Related Matters) Act
2007 a Redundancy Panel was set up in accordance with the partnership
agreement Towards 2016. Some collective redundancies may be referred
to the Panel to determine whether the redundancies were (or are being) carried
out in order to replace the employees with workers on lower pay or other less
favourable terms and conditions. These are known as exceptional collective
redundancies. If the panel decides the redundancies were carried out for this
reason, the employees concerned will be able to take action for unfair
dismissal.
Rules
In such a situation, under the Protection
of Employment Acts 1977-2014 your employer is obliged to enter into
consultations with a view to agreement with your representatives. This
legislation is separate from the Redundancy
Payments Acts 1967–2014. These consultations must take place at the
earliest opportunity and at least 30 days before the notice of redundancy is
given. The aim of the consultation is to consider whether there are any
alternatives to the redundancies.
Your employer is also obliged to provide the following information in
writing to your representatives:
- The reasons for the redundancy
- The number and descriptions of the employees affected
- The number and descriptions of employees normally employed
- The period in which the redundancies will happen
- The criteria for selection of employees for redundancy
- The method of calculating any redundancy payment.
Your employer is also obliged to inform the Minister for Employment Affairs
and Social Protection in writing of the proposed redundancies
at least 30 days before the occurrence of the first
redundancy.
Statutory Instrument 140 of 1977 sets out the particulars to be specified by an employer in a notification to the Minister under Section 12 of the Act, which are as follows:-.
(a) the name and address of the employer, indicating whether he is a sole trader, a partnership or a company;
(b) the address of the establishment where the collective redundancies are proposed;
(c) the total number of persons normally employed at that establishment;
(d) the number and descriptions or categories of employees whom it is proposed to make redundant;
(e) the period during which the collective redundancies are proposed to be effected, stating the dates on which the first and the final dismissals are expected to take effect;
(f) the reasons for the proposed collective redundancies;
(g) the names and addresses of the trade unions or staff associations representing employees affected by the proposed redundancies and with which it has been the practice of the employer to conduct collective bargaining negotiations;
(h) the date on which consultations with each such trade union or staff association commenced and the progress achieved in those consultations to the date of the notification.
The Employees
(Provision of Information and Consultation) Act 2006 requires employers to
consult with employees on substantial changes in the workplace, including
proposals for collective redundancies. The Act applies to employers of 50
people or more.
Further information
Workplace Relations Commission
Information and Customer Service
O'Brien Road
Carlow
R93 W7W2
Ireland
Opening Hours: Mon. to Fri. 9.30am to 5pm
Tel: (059) 917 8990
Locall: 1890 80 80 90
Fax:(059) 917 8909
Homepage: https://www.workplacerelations.ie/en/