Overview

1. Redundancy and Alternatives to RedundancyClare FergusonH.R. Outsourcing,3 Parnell Street,WaterfordTel. 051 820101Email: hr@hroutsourcing.iewww.hroutsourcing.ie

2. Overview • Introduction • Redundancy Legislation • Selection Criteria • Notice Periods • Redundancy Payments • Alternatives to Redundancy: Lay-off, Short-time and other alternatives

3. Introduction • Current economic climate forcing reductions in staff costs • Cost-cutting measures to consider: Redundancy, Lay-offs, Short-time • Keeping Your Productive People

4. Redundancy Legislation • Obligations on employers under the following acts: • Redundancy Payments Acts 1967-2007 • Unfair Dismissals Acts 1977-2007 • Protection of Employment Act 1977, 2007 • Definition of Redundancy: • Redundancy occurs when an employee is dismissed for one or more reasons not relating to the employee concerned

5. Selection Criteria • Voluntary Redundancies • Selection of employees for compulsory redundancy must be on objective grounds • ‘Last-in, first-out’ criteria (all else being equal) • It is important to ensure that the selection criteria chosen: • Does not discriminate (Part-time, Fixed term workers) • Ensures the required skill-set is maintained in the business

6. Notice • Collective Redundancies and Notice • What is a Collective Redundancy? • Consultation must take place 30 days before the first notice is served • Formal Notice to Minister for Enterprise, Trade and Employment • In the case of any termination of employment, a minimum notice period applies, dependent on the length of service: Length of ServiceMinimum Notice 13 weeks- 2 years 1 weeks’ notice 2- 5 years 2 weeks’ notice 5-10 years 4 weeks’ notice 10-15 years 6 weeks’ notice >15 years 8 weeks’ notice • The notice period stated in a contract of employment will over-ride the notice periods above if a longer period of notice is outlined in the contract. • Payment in lieu of notice may apply if stated in Contract of Employment or on agreement with employee.

7. Redundancy Payments • An employee who is terminated on the grounds of redundancy is entitled to a redundancy payment, providing they have 104 weeks (2 years) continuous service with the company after reaching the age of 16. • Statutory Redundancy payments are calculated as follows: • 2 weeks’ gross pay for each year of continuous employment + 1 additional weeks’ gross pay • The statutory payment is capped at €600 gross earnings per week and all statutory payments are tax-free • 60% rebate can be claimed by employers from the Department of Enterprise, Trade and Employment. • Ex-Gratia Payments

8. Alternatives to Redundancy (1) • Lay-off • Lay-offs arise where employment ceases temporarily due to the employer being unable to provide an employee with work for which s/he was employed to do • Employers may lay-off their workforce where it is reasonable to believe that the lay-off will not be permanent. • Employees are not entitled to be paid during the lay off period • Notice must be given to the employee, although no set periods of notice apply.

9. Alternatives to Redundancy (2) • Short-time • Short-time occurs where an employees’ pay is less than half of his/her normal weekly pay or their hours of work are reduced to less than half of his/her normal weekly hours. • Employees receive pay in respect of hours actually worked during periods of short time • Notice must be given to the employee, although no set periods of notice apply.

10. Alternatives to Redundancy (3) • Please note that employees on lay-off or short-time can claim for redundancy after a period of: • 4 consecutive weeks or • A series of at least 6 weeks within a 13 week period where not more than 3 were consecutive • Other Alternatives • Reduced Hours • Pay freeze • % Pay cuts

11. Thank you for your attentionFor further information, please contact:- Clare Ferguson Managing DirectorHR Outsourcing,3 Parnell Street,Waterford.www.hroutsourcing.ieTel. 051 820101 Email: hr@hroutsourcing.ie