Written answers

Tuesday, 9 May 2023

Department of Enterprise, Trade and Employment

Redundancy Payments

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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257. To ask the Minister for Enterprise, Trade and Employment the engagement his Department has had with an organisation (details supplied) to ensure that a company is abiding by the Workplace Relations Commission guidelines regarding redundancies, particularly given, reports of staff concerns in respect of the company's compliance with such guidelines; and if he will make a statement on the matter. [21643/23]

Photo of Ivana BacikIvana Bacik (Dublin Bay South, Labour)
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258. To ask the Minister for Enterprise, Trade and Employment the engagement his Department has had with an organisation (details supplied) to ensure that severance packages are similar to those given to other workers in the technology sector and that the company follow best practice in respect of offering a financial contribution for staff seeking independent legal advice to review such severance offers; and if he will make a statement on the matter. [21644/23]

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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I propose to take Questions Nos. 257 and 258 together.

Ireland has a robust suite of employment rights legislation to protect and support workers in collective redundancy situations. The Protection of Employment Act 1977 imposes several obligations on employers who are proposing collective redundancies, including an obligation on employers to notify the Minister for Enterprise, Trade and Employment of the proposed collective redundancy not less than 30 days before the first dismissals. I received a collective redundancy notification from the company referenced on 24 March 2023.

Companies are also obliged to engage in a 30-day information and consultation process with employees’ representatives. The 1977 Act details a number of conditions that these consultations must meet. Consultations must commence at least 30 days before the first notice of dismissal is given and should include the possibility of avoiding the proposed redundancies, reducing the number of employees effected or mitigating their consequences.

It is the employer’s legal responsibility to comply with these obligations. Employers who fail to comply are guilty of an offence and the Workplace Relations Commission (WRC) is the statutory agency responsible for bringing such prosecutions.

Employees also have the right to refer complaints to the Workplace Relations Commission on a wide range of employment law breaches for an adjudication and redress where appropriate, including the right to refer a complaint should an employer fail to consult or provide certain information to employees.

I appreciate the workers are disappointed with certain aspects of the consultation process and have stated their intention to refer a complaint to the WRC. However, the relevant bodies to support parties in resolving their differences in these situations are the independent offices of the WRC and Labour Court.

While I strongly encourage parties to engage in consultation in a constructive manner with a view to finding a mutually acceptable solution, this is not a matter in which I can intervene. It is important that the autonomy of both employee and employer bodies and their respective members in the matter of resolving differences is respected by the State.

In relation to the issues raised regarding the redundancy package on offer, the Redundancy Payments Act 1967 as amended requires that eligible employees are entitled to receive a minimum statutory payment in situations of redundancy. Negotiations on enhanced redundancy packages, over and above the statutory entitlement, are entirely a voluntary matter between employers and workers. The State has no role in this matter.

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