Recent and significant developments in Irish collective redundancy law have emerged due to the case of Debenhams Retail (Ireland) Limited & Debenhams Retail (Ireland) Limited (In Liquidation). In this case, the Labour Court clarified obligations under collective redundancies legislation.
Obligation to Consult
They found that consultations with employee representatives should have commenced at the earliest opportunity, which in this case was 9 April 2020. The delay until 17 April 2020 narrowed potential options for reducing the impact of redundancies. The court upheld a four-week remuneration award for the delay.
Obligation to Provide Relevant Information
While the WRC found a breach in the provision of information, the Labour Court determined that Debenhams had adequately addressed all issues raised by the union, complying with the requirements of section 10.
The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024
Effective 1 July 2024, the Act introduced new elements to the law on collective redundancies. Some of the key changes include:
Consultation/Notification
In the event of collective redundancies consultation must take place at the earliest opportunity with at least 30 days' notice being given before they take effect. Employees may seek redress from the Workplace Relations Commission (WRC) where their employer makes them redundant before the 30-day notification period finishes.
In the event of the employer becoming insolvent, the Insolvency Practitioner (IP) is also subject to the same obligations to consult and provide information to employees. They must also appoint “responsible persons'' to engage collectively with employees.
Penalties
Non-compliance with these obligations can result in criminal convictions and fines of up to €250,000.
To Summarise
The changes introduced by the 2024 Act and the Crowe v Debenhams decision underscore the stringent nature of obligations on employers and responsible persons in collective redundancy situations. Penalties for non-compliance are substantial, emphasising the importance of adhering to these legislative requirements to protect employee rights.
Employers must review their practices to ensure early, transparent consultations with employee representatives to comply with the enhanced legal framework and avoid significant penalties.
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