Written answers

Tuesday, 13 December 2022

Department of Enterprise, Trade and Employment

Employment Rights

Photo of Gerald NashGerald Nash (Louth, Labour)
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86. To ask the Minister for Enterprise, Trade and Employment if he plans to review any provisions of the Protection of Employment Acts 1977 to 2014 in respect of the requirement for employers to notify the Minister of proposed collective redundancies and the obligation on employers to engage in an information and consultation process with employees' representatives; if he will consider changes to the sanctions involved for any breaches of these provisions of the Acts; and if he will make a statement on the matter. [62089/22]

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The Protection of Employment Act 1977 imposes certain legal obligations on employers proposing collective redundancies. These obligations include the requirement to consult and provide information to employees and their representatives, and to notify the Minister for Enterprise, Trade & Employment of the proposals at least 30 days before the first dismissal takes place.

The Act also includes provisions which allow employees refer complaints to the Workplace Relations Commission if an employer has failed to comply with these obligations. Employers who fail to comply with these obligations may also be liable to fines ranging from €5,000, or up to a maximum of €250,000 where redundancies take effect prior to the expiry of the 30-day notification process.

Following constructive engagement with the Social Partners, the Department published a Plan of Action on Collective Redundancies following Insolvency in May 2021.

The Plan sets out several commitments to safeguard further the rights of workers in these circumstances including:

- To introduce amendments to employment law and company law dealing with matters related to collective redundancies following company insolvency, - To develop a Guidance Document to provide clear and accessible information in relation to the rights and remedies available to employees in such circumstances,

- To establish a new Employment Law Review Group.

Progress has been made to date on the Plan with some company law changes already made and a number of both employment rights and further company law changes being worked on by the Department.

A Guidance Document was published in December 2021. This provides clear and accessible information to employees facing a collective redundancy situation following a company insolvency on their rights and the remedies available to them.

One of the specific commitments included in the Plan of Action is to legislate to allow employees to seek redress from the WRC where their employer makes them redundant before the 30-day notification period finishes. This change will apply to all collective redundancies, not just those precipitated by insolvency.

Significant progress has been made on drafting Heads of Bill in respect of this and remaining employment law changes that require legislative effect. It is expected these measures will cover amendments to the Protection of Employment Act 1977, which protects employees during collective redundancies.

The timeframe for proposing the General Scheme of a Bill to Government covering these measures is early next year.

Work has commenced on the establishment of the Employment Law Review Group. In advising the Minister, the Review Group will seek to ensure that the State’s suite of employment rights and redundancy legislation remains relevant and fit for purpose and is updated to reflect international developments. This work involves drafting Terms of Reference, organising suitable membership and agreeing a workplan. The Group will initially be established on a non-statutory basis in 2023. The appropriate legislation to have the Group placed on a statutory footing will be drafted as soon as possible thereafter.

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