Redundancies during the COVID-19 pandemic
The spread of COVID-19 has presented businesses with unprecedented challenges. Many Employers may need to consider reducing costs within the business, and employee costs may be one consideration. You can explore various options to cut employee costs such as wage reductions, short time and lay off to name a few. However, often the Employer will have no other option but to choose redundancies.
While we understand that it can be difficult to make these decisions. It is important to follow the fair and due process are when deciding where to make reductions. Additionally, An employee’s employment can be terminated through redundancy but unless the redundancy is fair and legitimate, the WRC may find the Employer guilty of unfair dismissal and/or unfair selection for redundancy.
Accusations of unfair dismissal can prove costly if upheld. Moreover, it is essential to seek the right advice when navigating the redundancy process. We can support you through the following:
Case-by-case advice and online support
No two redundancies are the same. Here at the HR Company, we have over 19 years’ experience assisting both SMEs and MNCs navigate the redundancy process. Your very own dedicated consultant can provide assistance over the phone and on site to support you during this difficult time.
Alternatives
It is important to remember that it is the role being made redundant and not the individual. Redundancy is impersonal. Poor performance, absence or conduct are not a valid reason for making a role redundant.
Redundancy should be seen as a last resort and all other alternative avenues should be exhausted before making a role redundant. If you do make a role redundant, you can not re-hire for this position within 12 months.
Voluntary Redundancy
You can initially request volunteers for redundancy before starting a compulsory selection process. However, you should reserve the right to reject applications for voluntary redundancy if that would mean losing valuable skills.
Selection Matrix
The selection process has a heavy bearing on whether the redundancy is fair and legitimate. Employers need to ensure that they invest time into ensuring that their selection process is fair and will stand up if challenged.
Collective Redundancies
‘Collective redundancy’ is the making redundant of a minimum number of employees within a period of 30 consecutive days. The minimum number varies according to the normal size of the businesses workforce. The relevant minimum number of proposed redundancies in relation to the size of the overall workforce is typically as follows:
Consultation Process
You should consult all employees individually regardless of the number you plan to make redundant, including those who may not be currently at work. The consultation must take place within a sufficient timescale. Employers must inform and consult employees in the event of a collective redundancy situation. The consultation period must last a minimum of 30 days.
Where there are recognised Trade Unions or Works Councils within an Employer. The Employer may choose to consult with such body and it is usual for them to do so.
Where Employers do not consult with a Trade Union or Works Council, Employees must be given an opportunity to elect a representative(s) from amongst their body. Information and consultation must then be carried out between the employee representatives and the Employer.
Documentation
We provide fully customised documentation that your organisation will require throughout the process. In addition, we will walk you through the steps involved to ensure you provide the correct documentation at the right time.
Calculations
Employees need to have at least 104 weeks (i.e. 2 years) of continuous service with a Company in order to qualify for a statutory redundancy payment. You will be required to give employees 2 weeks’ pay for every year of service (this is capped at €600 per week) plus an additional week pay. Periods of absence throughout an employee’s employment may be taken into consideration such as periods of lay off.
As mentioned at the start of this article, no two redundancies are the same and our existing clients can consult with their dedicated Account Manager about the process in detail at no extra charge, as normal.
If you are not a client and you are unsure about the correct process to follow, or if you just need some support during this difficult time, please feel free to reach out and get in touch using the below form: