Written answers

Wednesday, 20 September 2023

Department of Enterprise, Trade and Employment

Redundancy Payments

Photo of Neasa HouriganNeasa Hourigan (Dublin Central, Green Party)
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224. To ask 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]

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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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.

Photo of Neasa HouriganNeasa Hourigan (Dublin Central, Green Party)
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225. To ask the Minister for Enterprise, Trade and Employment his plans to increase the maximum weekly amount of €600 used to calculate statutory redundancy payment; and if he will make a statement on the matter. [39624/23]

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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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.

Over the past year the Government has introduced or progressed several measures with the aim of improving working conditions in Ireland. These measures are an important part of building an inclusive economy – particularly one that is attractive to highly mobile labour and skills. These measures are necessary to improve the lives of workers in Ireland and to ensure Ireland is in line with other European countries.

It is important to also be aware of the impact of these measures on employers, particularly in the context of the existing financial pressures on businesses. Any consideration of an increase to the €600 limit would have to be carefully balanced with the overall economic climate and running costs for businesses.

Significant consultation with a number of Government Departments, employer and employee representative groups and other relevant stakeholders would also be required.

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