Lifting of suspension of Redundancy – what happens next?

Shannon Chamber HR is a dedicated HR and Employment Law Support Service for members of Shannon Chamber provided in partnership with Adare Human Resource Management, experts in Employment Law, Industrial Relations, Human Resources and Health & Safety at preferential rates.

From today, 30th September, the suspension of an employee’s right to seek redundancy is being lifted. The measure was brought in as part of emergency measures as a result of Covid-19 and meant that any employee who was temporarily laid-off or put on short-time due to the health crisis could not invoke their right to request redundancy from their employer.

From tomorrow, employees can claim a redundancy payment termed, notice of intention to claim, if they are laid off or on short-time, or a combination of both for at least 4 consecutive weeks or 6 weeks within a 13-week period (where 3 of those weeks are consecutive) if they have been in that position for at least two years.

Employers must respond to the request within 7 days. And, either accept the request for redundancy or offer a “counter notice”. If the employer does not give a counter notice, it is assumed that the request has been accepted.

A counter notice is where an employer states that there will be work available and will commence within the following 4-week period from the date of the request and the work will last for at least 13 weeks without lay-off.

Recent figures released by the Department of Enterprise estimate that between 24,000 and 56,000 redundancies are expected in the coming months once the financial supports for organisations end. And, the cost of restoring the right to request redundancy could cost between €30 million and €130 million.[1]

Under current employment law, employees are not entitled to redundancy payments for time spent on the Pandemic Unemployment Payment (PUP) or Jobseekers Benefit. To ensure employees are not at a disadvantage because of the impact of Covid-19, the Government also announced that it is setting up a scheme covering statutory redundancy covering the period of lockdown with a maximum payment of €1,860 per employee. A flexible and discretionary approach will be taken in relation to recovery of the redundancy debt and in many cases the debt can be repaid over a number of years.

If your Organisation is facing issues around redundancy and you require support, please get in touch with our expert-led team at Shannon Chamber HR.

 

Why Shannon Chamber HR?

  • Access to solutions-focused advice and support on HR and Employment Law queries for your Organisation provided by the experienced expert-led team at Adare Human Resource Management, giving you peace of mind that you can effectively manage any employment or HR issues that may arise. For information on the full range of services and supports provided, click here.

Contact:
For further information on the HR and Employment Law support services provided, to arrange a meeting or to receive a quote, contact the team at Shannon Chamber – admin@shannonchamber.ie / 061 475 854.

 

 

[1] Irish Times, 21/9/2021