What Are Your Legal Rights When Facing Redundancy?


What Are Your Legal Rights When Facing Redundancy?

When faced with redundancy, your employer has responsibilities to treat you fairly and act according to your contract and legal redundancy rights. That includes ensuring you’re consulted, following the right selection process and giving you a proper notice period. They should think about any alternatives to making you redundant. If not, you can claim for unfair dismissal, or claim compensation for lack of consultation.

Get an overview of your rights if you’re facing redundancy. Consult with financial professionals of Money Maximising Advisors Limited and get redundancy advice Kildare over your free consultation call.  

What Is Redundancy?

Redundancy is discharge from your job, caused by your employer needing to reduce the workforce. The reasons may include:

  • The introduction of new technology or a new system has made your job unnecessary.
  • The job you were hired for no more exists.
  • They need to cut costs by reducing staff members.
  • The business is closing down or moving.

Remember, redundancy is not the same as being dismissed from your job for other reasons. 

Your employer must use an unbiased and objective way of selecting job roles to make redundant. And they must tell you what it is. 

Anytime you are not satisfied with the reason, you can take your employer to a tribunal.

If your employer is making less than 20 individuals redundant in one establishment, it is called an individual redundancy. When there are 20 or more redundant employees in one establishment within a span of 90 days, then it is a collective redundancy.

Your Right To Consultation

A notice period is the amount of time between when your employer informs you that you’ll be made redundant and your last working day. 

According to the redundancy law, you’re entitled to a minimum notice period of:

  • 12 weeks’ notice if you’ve been employed in the organisation for a minimum of 12 years or more.
  • At least one week’s notice if your employment period is between one month and two years.
  • One week’s notice for each year if you’ve been associated with the organisation between 2 to 12 years.

Book your free redundancy consultation Ireland with expert pension advisors today.

Pay In Lieu Of Notice

If your employer disagrees with allowing you the notice period, they must offer you a lump sum instead – called pay in lieu of notice.

This amount is taxed in the same way as your ordinary pay.

Gardening Leave (Garden Leave)

You can be asked to serve out your redundancy notice away from work. It is also termed as gardening leave. 

This means even though you’re not actually working, still you’re legally employed and you will receive your normal salary and benefits. But:

  •  You’ll have to abide by the rules of the contract.
  • You might be asked to join back to work if you’re needed.
  • You can’t kick off a job with a new employer.

Compromise Agreements

If your employer hasn’t followed a fair procedure in selecting you for redundancy, they might ask you to sign an agreement mentioning that you won’t go to an employment tribunal. And this is offered in exchange for an extra payment.

Your employer must pay for you to get independent legal advice so that you become aware of the rights that you’re giving up.

Your Right To Consultation

Employers who propose to dismiss a redundancy of 20 or more employees in an organisation have a statutory duty to employees before dismissing them on the grounds of redundancy. The consultation should aspire to provide you with a way to influence the redundancy process.

In short, your employer must tell you what’s going on and allow you a chance to ask questions and raise objections.

As part of this consultation process, the employer has to:

  • Consider alternatives to redundancy.
  • Look for ways to reduce the number of redundancies.
  • Look at how they can minimise the resulting hardships.

In Case Of Individual Consultation

Your employer should arrange for a meeting with you to explain what’s happening and why.

During this consultation, you can raise objections and suggest alternatives to redundancy.

Your employer considers your objections and, if they still proceed with the redundancy, they must confirm the same to you in writing.

In case you’re unhappy with the decision, your employers will allow you the right to appeal.

If your dismissal seems unfair and you’ve decided to sign a ‘compromise agreement’ you do this when the discussion with the employer is over.

In Case Of Collective Consultation

As per redundancy law, if the number of employees made redundant is 20 or more, the consultation process is much more structured and must involve a trade union or employee representative.

If your employer doesn’t consult the representatives, you will be able to make an Industrial Tribunal claim for a protective award. This is an award for up to 9 days’ pay.

What Happens After The Redundancy Consultation?

After your redundancy consultation Ireland,

  • You’ll receive a redundancy notice.
  • You must be given a statutory notice period between one to twelve weeks- depending on how long you’ve been at the job.
  • If you’re opting for gardening leave, you’ll normally leave work as soon as you get your redundancy notice.
  • You’re entitled to paid time off – usually two days – to search for work, in tandem with a reasonable amount of unpaid leave for job search and training.
  • Job ends.

Your Right To Time Off To Look For Work

If you’ve worked continuously for your employer for at least two years, they are bound to pay you up to 40% of a week’s pay to cover your time off.

For instance: If you have a five-day working period and you take two days off in total to attend interviews, then your employer will have to pay you for this time.

If you take more time off than this, you don’t have to pay for this. Some employers can be generous too. So it’s worth discussing with them.

Leaving Your Job Early

If you’ve been offered a job and your new employer wants you to start your work before the redundancy notice period, then you must discuss with your employer whether you can leave early without losing your redundancy pay

If you leave early without your employer’s permission, there are chances that you will lose some or all your redundancy pay.

Final Thoughts

Money Maximising Advisors Limited offer free, confidential and impartial redundancy advice Kildare. You will also receive advice on your pension and employment issues in Ireland. Call the MMA helpline at +353 91 393 125 or visit the Money Maximising Advisors Limited.

Mail us at office@mmadvisors.ie

Or visit our office at Unit 3, Office 6, Liosban Business Park, Tuam Rd, Galway, Ireland

Read Also- Why a PRSA is the Key to a Secure Financial Future?


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