|
|
 |
You are > Home > Collective redundancies
|
Thursday, November 22, 2007
Collective redundancies
Q: I work behind the bar in a pub which is owned and run by a local businessman. Business has been relatively quiet this year due to a combination of the smoking ban and greater concern about drink driving.
The owner recently admitted to me that he is considering closing down after Christmas, which will leave my 22 colleagues and I out of work. We are all concerned about our futures.
Can you tell me how much notice we can expect to receive and whether or not we will be entitled to redundancy money?
A: Hopefully business will pick up over the coming months and your employer will change his mind. If, however, he does move to close the pub, you need to keep a number of points in mind.
Firstly, this is likely to be what the law regards as a “collective redundancy” because of the size of the workforce. In collective redundancy situations, employers need to provide prior written notice of the redundancies to the Minister for Enterprise, Trade and Employment. At around the same time, the employer will need to provide you with written confirmation on a number of points, including the method that he intends to use for calculating your redundancy payments.
The employer then needs to engage in consultations with your representatives aimed at minimising the number of job losses and reaching agreement on a number of other key issues. If you are a member of a trade union your union representative is likely to be involved in handling this process on your behalf.
Significantly, the consultation process must be completed before any formal notice of redundancy can be issued. Normally, consultation takes in or around 30 days. Only then can formal notice of redundancy be served on you and your colleagues.
Most employees are entitled to at least two weeks formal notice of redundancy in these circumstances, although the period may be longer if you have a longer notice period specified in your contract or if you have lengthy service.
In real terms, it is highly unlikely that the entire process can be concluded in less than six weeks and it could take considerably longer.
Those employees who have at least two years of continuous service will be entitled to receive redundancy lump sum payments. Most employees will be entitled to receive at least two weeks’ pay per year of service plus an additional weeks’ pay on top. The value of a weeks’ pay is, however, capped at €600. The statutory payment is payable tax free.
Your employer will not be legally obliged to pay anything on top of the normal statutory entitlement. He may, however, wish to make some voluntary “top-up” payment on the basis that such is common practice. The amount of any such payment is entirely a matter for your employer to determine.
Top-up payments in Ireland typically tend to range between one and six weeks’ pay per year of service. However, some employers pay no top-up at all. Most of those cases involve shutdown situations with small employers.
You may have heard of people who received higher levels of top-up payments (up to 10 weeks pay per year of service), but these are almost exclusively paid in voluntary redundancy situations where large, profitable companies are down-sizing to further improve their profit-margins.
In any event, any payment that you receive over and above the statutory minimum may also attract the benefit of further tax exemptions.
In summary then, you are at least six weeks away from any redundancy and you will be entitled to a redundancy payment if you have completed at least two years of service at the pub.
Adrian Twomey practices in the area of employment law at Doyles Solicitors of Wexford and New Ross. In his regular column he answers your questions about the law as it applies to you and your work. Adrian can be contacted on 053-9123077.
Main News Page
Previous Page
|
|
|
|
