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.
3 and 4(c); Schedule 1: 3(a), 3(c)
Under the Employees (Information and Consultation) act 2006, employers must consult with employees on substantial changes in the workplace, including proposals for collective redundancies (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). Redundancies may not take effect earlier than 30 days after this notification.
For collective dismissal scenarios, the Protection of Employment Acts gives employees a right to consultation - through the prescribed representative channels (for example trade unions and works council) - as well as the employer having an obligation to provide certain information in writing, such as the reasons for the proposed redundancies; the number, and descriptions or categories of employees proposed to be made redundant; the number of employees, and description or categories of those normally employed; the period during which it is proposed to effect the redundancies; the criteria proposed for the selection of the workers to be made redundant; and the method for calculating any redundancy payments.
The act provides for information and consultation on the 'situation, structure and probable development of employment within the undertaking and on any anticipatory measures envisaged in particular where there is a threat to employment' and 'information and consultation on decisions likely to lead to substantial changes in work organisation or in contractual relations' which includes transfer situations and collective redundancy.
The act applies to all establishments with at least 50 employees.
Schedule 1 of the 2006 Act allows for an information and consultation forum to be set up. This has to be initiated by the staff side. If the employer does not agree to the forum, recourse is available at the labour court to enforce this provision. Forums must consist of at least 3 people but not more than 30.
To activate the information and consultation forum (which is essentially a works council), there must be a written request made by 10% of employees to the employer. If the employer does not adhere to this request, the employees can proceed to the labour court, requesting that there should be negotiations to establish information and consultation arrangements.
Employee representatives, performing their functions under the 2006 act, cannot be penalised for doing so. Such representatives have recourse to the Workplace Relations Commission if they have been penalised in contravention of section 13 of the 2006 act.
In 2018, regulations were amended to include seafarers (who were formerly excluded from consultation rights in the 2006 act).
In practice, the consultation process consists of management informing employee representatives of the situation as it pertains at the time. The focus is on consultation rather than on negotiation.
The forum is not considered to be a priority measure for trade unions, as it does not involve trade union negotiation; rather it is a consultation forum of a direct channel between management and employees - and can, in effect, bypass the role of unions.
Eurofound (2015), Ireland: Staff information and consultation on restructuring plans, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-restructuring-plans/ireland
Between the end of 2022 and the first half of 2023, almost 300,000 employees working for ‘big tech’ companies were laid off across the world, making headlines for months in global media. This development has been a shock, considering the high numbers of jobs in well-known tech corporations with a reputation for offering good working conditions and well-paid positions.
The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions. Many banks in the sector have been undergoing serial restructuring since the global financial crisis, and it is one of the few service sectors with stagnant or declining employment.
Since 2011, the Restructuring support instruments database of the EU PolicyWatch has been collecting information on measures that assist companies and workers to anticipate and manage restructuring. This article looks at measures in the database aimed at supporting employees and employers during the COVID-19 pandemic (2020–2022).
Eurofound’s European Restructuring Monitor database reveals the impact of the energy crisis on employment in the EU. Following Russia’s invasion of Ukraine in February 2022, energy prices have hit record highs. The European Commission imposed sanctions and limitations on the import of oil and gas from Russia, which has reacted by reneging on supply commitments to many Member States.
