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.
9-14 of 1977 Act; s.9 of the 2021 Act
The Protection of employment act makes it mandatory on employers and/or Responsible Persons ( i.e., a liquidator, a provisional liquidator, a receiver, or any other person appointed by a court to assume full responsibility for the management of a business during liquidation proceedings) proposing a collective redundancy to engage in an information and consultation process with employees’ representatives and to notify the Minister for Enterprise, Trade and Employment of the proposed collective redundancy at the earliest opportunity and in any event at least 30 days before the first dismissal takes effect.
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.
The following information has to be provided: name and address of the employer, indicating whether he or she is a sole trader, a partnership or a company; the address of the establishment where the collective redundancy is proposed; the total number of persons normally employed at the establishment; the number and description or categories of employees proposed to be made redundant; the period during which the collective redundancies are proposed to be effected; the reasons for the proposed redundancies; the names and addresses of the employees' representatives consulted about the proposed redundancies; the date on which those consultations commenced and the progress achieved to date of notification.
The minister must also be supplied with a copy of all the information given to employee representatives, and all information supplied to the minister has to be supplied to employee representatives.
The minister cannot prevent the redundancies, but may require employers to consult various authorities in order to seek solutions to problems caused by the redundancies, or attempt to reduce the number of planned redundancies.
In some redundancy situations, likely to have a major impact in a region, special interagency task forces designed to fast track the design and provision of services in response to significant impending job losses are in place. IDA Ireland is often consulted during the 30-day period at companies that come under its remit and which are affected by redundancies.
No redundancies can take place during the 30-day consultation period.
If an employer and/or Responsible Person fails to comply with the notification process, they are guilty of an offence and can be fined up to €5,000. Where redundancies have taken effect during the 30-day period, the employer and/or Responsible Person can face a fine of up to €250,000.
The Companies (Rescue Process for Small and Micro Companies) Act 2021 provides new rights to employees as creditors in liquidation scenarios. The main change is that it is now a right of creditors to form an inspection committee, on which there must be at least one employee creditor. There is also recourse to the Workplace Relations Commission and Labour Court built into new provisions, in the event of a dispute during the liquidation consultation phase. This inspection committee facilitates a direct employee voice in the liquidation scenario; the chosen employee creditor would most likely be chosen through a trade union or works council process.
Eurofound (2015), Ireland: Public authorities information and consultation on dismissals, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/public-authorities-information-and-consultation-on-dismissals/ireland
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