13th August 2024
Minister of State for Business, Employment and Retail, Emer Higgins TD, today published an updated version of the Information Handbook: Rights and Remedies available to Employees Facing a Collective Redundancy Situation.
The Information Handbook was first published in 2021 as part of Government’s Plan of Action on Collective Redundancies following Insolvency. The Information Handbook provides clear and accessible information for employees facing a collective redundancy situation following a company insolvency.
The updated Information Handbook reflects the changes to collective redundancy rules introduced in the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024. These changes took effect from 1 July 2024. They provide a new form of redress to employees where their employer makes them redundant before the end of the 30-day notification period set out in law. They also enhance employees’ entitlements to information, both as creditors under company law and as workers, in the event of their employer’s insolvency.
Ministers Higgins said:
“The Information Handbook has been a useful resource for employees since its publication in 2021. This updated Handbook reflects recent legislative changes we’ve made to further enhance employees’ rights when facing collective redundancies.
“Ireland has an increasingly diverse and multilingual labour force. It’s really important that we can help all employees understand their rights when facing collective redundancies. That’s why we have published a new Plain Language summary, which is available in eight different languages.
“I encourage anyone who is potentially facing collective redundancies to check the Information Handbook for clear, accessible information on their rights.”
Notes for Editors
The following changes were introduced in the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024.
The Protection of Employment Act 1977, which governs collective redundancy rules, has been amended to:
- Remove the exemption from notification requirements in respect of collective redundancies caused by the employer’s insolvency. This means all collective redundancies are subject to a 30-day notification period before they take effect, including where the employer is insolvent.
- Provide that employees may seek redress from the Workplace Relations Commission (WRC) where their employer makes them redundant before the 30-day notification period finishes. This change applies to all collective redundancies, not just those precipitated by insolvency. This is in addition to employees’ existing right to make a complaint to the WRC should their employer fail to consult with or provide information to their representatives.
- Align the 1977 Act with case law of the Court of Justice of the European Union (CJEU), by explicitly providing that the employer’s obligations must also be complied with by a liquidator or similar appointee, where they are managing the collective redundancy process in an insolvency situation.
- Provide that, where a liquidator or similar appointee is managing the collective redundancy process in an insolvency situation and they fail to comply with their duties under the Act, the WRC may prosecute them, with a maximum fine on conviction of €5,000.
- Update the methods by which employers can notify the Minister of proposed collective redundancies.
The Companies Act 2014, which underpins Ireland’s modern and flexible corporate recovery and insolvency framework, has been amended to:
- Improve the quality and circulation of information to workers as creditors such as ensuring they have access, within a reasonable period, to the company’s Statement of Affairs which is filed with the court and ensuring the provisional liquidator informs them of his/her appointment, explains the liquidation process and invites them to provide relevant information.
- Ensure remedies for transactional avoidance are more accessible to creditors.
The Plain Language summary of the Information Handbook is available in the following languages: English, Irish, French, Spanish, Arabic, Portuguese, Polish and Romanian.
ENDS
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