European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
1977 Act: 11, 13, 14; 2007 Act: 13
Under sections 9 and 10 of the 1977 Act, there is an obligation on an employer to consult with employee representatives and supply certain information in the context of collective redundancies. Collective redundancy, for the purpose of the act, is defined as at least 5 redundancies in an establishment employing 21-49 employees; at least 10 redundancies in an establishment employing 50-99 employees; at least 10% of employees made redundant in an establishment employing 100-299 employees; and at least 30 redundancies in an establishment that employs 300 or more people.
Section 11 deals with failure to comply with sections 9 and 10: an employer who fails to initiate consultations can be fined by up to €5,000.
Section 13 imposes a fine of €5,000 on an employer who fails to notify the minister of proposed redundancies.
Under section 14 of the act, an employer is not allowed to commence collective redundancies until the 30-day consultation period has expired. If the employer breaches this provision, they face a fine of up to €250,000. This fine had been €12,500 before the 1977 Act was amended by the 2007 Act. Offences under sections 9 and 10 of the 1977 Act are prosecuted by the relevant minister.
In 2024, the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 extended the obligations set out in sections 9 and 10 of the 1977 Act to also encompass “responsible persons”, i.e., a liquidator, a provisional liquidator, a receiver, or any other person appointed by a court to assume full responsibility of insolvent companies. Under the 2024 act, the abovementioned penalties for non-compliance with the obligations also apply to responsible persons.
The 2024 act also introduced a new complaint employees can bring against their employer/responsible person for effecting their redundancy before the expiration of 30-day consultation period. Up to 4 weeks renumeration can be awarded by the court for each breach.
Eurofound (2015), Ireland: Effects of non-compliance with dismissal regulations, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/effects-of-non-compliance-with-dismissal-regulations/ireland
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