Irish Employment Law: Redundancy is fast becoming a reality for many employers and employees throughout Ireland.
In the past week Vita Cortex workers successfully concluded negotiations for redundancy payments after staging an almost five month sit-in.
Irish Employment Law: Statutory Redundancy Payments
The statutory redundancy payment is a lump-sum payment based on the pay of the employee. Qualifying employees are entitled to:
- Two weeks’ pay for every year of service over the age of 16 and
- One further week’s pay
Under Irish employment law, the amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).
Irish Employment Law: Additional Payments
In addition to statutory redundancy, an employee may be entitled to additional payments In addition to statutory redundancy, an employee may be entitled to additional redundancy payments under their contract of employment. This is what was essentially at the heart of the Vita Cortex dispute. Under their contracts, employees were entitled to additional redundancy payments outside of the statutory redundancy. However the employer claimed they were unable to meet these contractual obligations. At Taylor Solicitors, we advise parties on both sides of the fence: employers and employees. And not surprisingly we are seeing an increase in the level of disputes between employers and disgruntled employees. To minimise potential liability employers should clearly establish redundancy rights and entitlements in employment contracts and ensure they follow good practice in redundancy selections and procedures. From an employee’s perspective, there is no doubt there can be strength in numbers. Even industries without a history of trade union representation can benefit from staff coming together to negotiate with management. The accomplishments of the Vita Cortex employees supports the contention that with enough Davids, even Goliath will waiver when it comes to redundancy. Find out more about Irish employment law.