Written answers

Thursday, 11 May 2023

Department of Enterprise, Trade and Employment

Employment Rights

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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101. To ask the Minister for Enterprise, Trade and Employment his views on efforts to develop legislation with regard to enhancing employee rights in collective redundancies; and if he will make a statement on the matter. [22167/23]

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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On 4 May 2023, the Government gave approval for the priority drafting of the Plan of Action on Collective Redundancies following Insolvency Bill.

The Bill will deliver on important Programme for Government commitments and serves to implement the remaining commitments in the Plan of Action on Collective Redundancies following Insolvency.

The Plan of Action on Collective Redundancies following Insolvency was published in June 2021, following extensive engagement with the social partners. The policy objective of this Plan is to further enhance the protection of employees facing collective redundancy in a way that does not impede enterprises conducting their business. Significant progress has already been achieved in delivering on various actions in the Plan.

The Protection of Employment Act 1977, which governs collective redundancy rules, will be amended to:

  • Remove the exemption from notification requirements in respect of collective redundancies caused by the employer’s insolvency. This means all collective redundancies will be subject to a 30-day notification period before they take effect, including where the employer is insolvent.
  • Provide that employees may seek redress from the Workplace Relations Commission (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. This is in addition to employees’ existing right to make a complaint to the WRC should their employer fail to consult with or provide information to their representatives.
  • Align the 1977 Act with case law of the Court of Justice of the European Union (CJEU), by explicitly providing that the employer’s obligations must also be complied with by a liquidator or similar appointee, where they are managing the collective redundancy process in an insolvency situation, with enforcement powers conferred on the WRC.
  • Update the methods by which employers can notify the Minister of proposed collective redundancies.
The General Scheme will also provide for the establishment of a statutory Employment Law Review Group (ELRG) which will advise the Minister all aspects of employment and redundancy law.

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