1. Introduction
The Protection of Employment Acts 1977 to 2014 establish a particular framework for collective redundancies, supplementing the individual protections under the Redundancy Payments Acts and the Unfair Dismissals Acts. The framework imposes obligations on employers in respect of consultation, notification, and the timing of dismissals where the proposed redundancies meet the collective threshold.
This article addresses the framework of the Acts, the collective threshold, the consultation and notification obligations, and the leading recent decisions.
2. Legislation and Case Law
Section 7(2) of the Redundancy Payments Act 1967 defines redundancy. The provision identifies five circumstances in which a dismissal is by reason of redundancy: where the employer has ceased or intends to cease to carry on the business; where the employer’s requirements for employees to carry out work of a particular kind have ceased or diminished or are expected to cease or diminish; where the employer has decided to carry on the business with fewer employees; where the employer has decided that the work shall henceforth be done in a different manner for which the employee is not sufficiently qualified or trained; or where the employer has decided that the work shall henceforth be done by a person who is also capable of doing other work for which the employee is not qualified or trained.
Section 6 of the Protection of Employment Act 1977 defines collective redundancies. The provision applies where dismissals are proposed within a 30-day period and the number of dismissals exceeds specified thresholds calibrated by reference to the size of the workforce: 5 dismissals in an establishment normally employing 21 to 49 employees; 10 in an establishment of 50 to 99; 10% in an establishment of 100 to 299; or 30 in an establishment of 300 or more.
Section 9 of the Act requires the employer to consult with employees’ representatives at the earliest opportunity and in any event at least 30 days before the first dismissal takes effect. The consultation must include the reasons for the redundancies, the number and categories of employees affected, the proposed selection criteria, and the proposed calculation of any redundancy payments.
Section 12 of the Act requires the employer to notify the Minister for Enterprise, Tourism and Employment of the proposed collective redundancies at least 30 days before the first dismissal. The notification must include specified particulars and must be supported by the consultation documents.
Section 14 of the Act provides that no collective redundancy shall take effect before the expiry of 30 days from the date of the notification to the Minister, save with the consent of the Minister. The provision establishes a mandatory cooling-off period during which alternatives may be explored.
3. Decision
WRC and Labour Court decisions on Protection of Employment complaints typically address one or more of the following questions: does the proposed redundancy meet the collective threshold; has the consultation obligation been observed; has the notification obligation been observed; have the dismissals been timed in accordance with the Act.
Where the consultation obligation has not been observed, complaints may be brought by individual employees affected by the redundancy. The Adjudication Officer will examine the consultation actually conducted, the representatives involved, and the substantive engagement on the matters required by Section 9.
Where the notification obligation has not been observed, separate enforcement action may be available. The Minister may also take action in respect of the breach.
The interaction with individual unfair dismissal complaints is important. A collective redundancy that fails the Protection of Employment Acts framework may also be procedurally defective under the Section 6(7) reasonableness test. Individual complaints may therefore proceed on multiple grounds.
4. Takeaway
For employers contemplating collective redundancies, the practical importance of compliance with the Protection of Employment Acts cannot be overstated. The 30-day consultation and notification periods are mandatory; an attempt to expedite the process may be subject to challenge.
Engagement with the employees’ representatives should be substantive. Where no representatives exist, arrangements for the election of representatives should be made before the consultation begins.
For employees affected by collective redundancies, the Acts provide important supplementary protection. Practitioners should examine the conduct of the consultation, the timing of the dismissals, and the notification to the Minister. Failures in any of these areas may ground complaints both under the Acts and under the broader unfair dismissal regime.
Practitioners should also consider the parallel implications for individual complaints. A collective redundancy that fails the Acts framework may also fail the Ring v Unisalon framework, with multiple complaints available.
5. Further information
This article was prepared for informational purposes only. For further advice, please email enquiries@crushell.ie or contact the offices of Crushell & Co Solicitors.
6. About Crushell & Co
Crushell & Co is a specialist law firm focused on protecting and advancing the rights of employees in Ireland. We offer a nationwide service, advising individuals on a wide range of legal and regulatory issues arising at work, including employment law, employment immigration and workplace accidents and injuries.
We help employees understand their position and options by translating complex legal issues into clear, practical advice. Our approach is tailored to each client, ensuring that our strategy is aligned with their personal and professional circumstances.
Connect: @CrushellLaw or www.wordpress-576593-6594403.cloudwaysapps.com
