Collective Redundancies

What constitutes a collective redundancy?

It is the termination of the employment by an employer on grounds of redundancy, over a period of thirty days, of:

» 10 or more employees in establishments normally employing 20 to 99 employees;

» 10% or more of the number of employees in establishments employing 100 to  299 employees; and

» 30 or more in establishments employing 300 employees or above

Collective Redundancies are regulated by Legal Notice 428 of 2002 – Collective Redundancies (Protection of Employment) Regulations

Consultation with Employees’ Representatives

The Employer proposing to declare the collective redundancy has the duty to notify in writing the Employees’ Representatives, also forwarding a copy to the Director of the Department of Industrial and Employment Relations, about such intention while giving the said representatives  an opportunity to consult. Such consultations between the employer and the employees’ representatives should commence within seven working days from the day of notification and are intended to cover ways and means of avoiding the collective redundancies or reducing the number of employees affected by such redundancies and for mitigating the consequences thereof.

Information to the Employees’ Representatives

Within the period of seven days mentioned above the employer has the duty to supply the Employees’ Representatives with a written statement, also forwarding a copy to the Director the Department of Industrial and Employment Relations, providing:

» The reasons for the redundancies

» Number of employees intended to be made redundant

» Number of employees normally employed

» The criteria proposed for the selection of the employees to be made redundant

» Details regarding any redundancy payments which are due

» The period over which redundancies are to be effected. 

When redundancies are to take effect

The notice of termination of employment may begin to run from the date of the commencement of the consultations with the employees’ representatives. However, the employer cannot terminate the employment of employees effected by any projected collective redundancy notified to the Director responsible for Employment and Industrial Relations, before the lapse of thirty days from notification. In exceptional circumstances however, the Director responsible for Employment and Industrial Relations may grant the employer a shorter period of notification. Nevertheless, the Director may also extend the said period by a second period of thirty days if it is deemed that such extension may provide further opportunity for the resolution of the reasons for the redundancies or for the identification of solutions to the benefit of those employees who are being declared redundant. The employer shall be informed of such extension by notice in writing,  prior to the lapse of the initial period.

 
 
Offences
Any person contravening the provisions of the applicable regulations shall he guilty of an offence and shall, on conviction, be liable to a fine of not less than €1,164.69 for every employee that is declared redundant.