Employees working for an insolvent company will have to be given at least 30 days’ notice of redundancy, under new legislative reforms to be introduced by the Government.
The issue of redundancy due to insolvency has been a topical issue over the past number of years due to the contentious closures of Clerys and Debenhams. The proposal is part of a new Department of Enterprise, Trade and Employment Action Plan to boost the rights of employees.
Currently collective redundancies cannot take effect until after a statutory 30-day period of notification to employees however, this does not apply to collective redundancies triggered by insolvency due to an exception provided for under Section 14 (3) of the Protection of Employment Act 1977. The Government hopes that by removing this exemption, it will provide “greater clarification to employees and resulting in enhanced transparency”.
We will keep you up to date as this progresses.
Authors – Eva Lindsay and Anne O’Connell
18th May 2021
Anne O’Connell Solicitors
19-22 Lower Baggot Street, Dublin 2
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