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Update : Extension Of Suspension Of The Right Of Employees To Claim Redundancy

The Government announced this week the further suspension of the application of Section 12 of the Redundancy Act 1967-2014, which was due to end on the 30th November will be extended again until the 31 March 2021.

Section 12 of the Act allows employees to apply for redundancy where they have spent a consecutive period of 4 weeks on layoff or short-time (or six weeks in thirteen weeks where not more than three have been consecutive).

Upon receipt of this notice of intention to claim redundancy, unless the employer is in a position to promise the employee an early return to work and takes certain specific steps in that regard, the employee will be entitled to redundancy payment. During Covid-19, however, these ordinary rules allowing employees on layoff or short-time to trigger a redundancy are temporarily suspended.

With the extension of the suspension period to March 31st, this will bring to a year the period during which employees have been deprived of their right to claim a redundancy lump sum. In light of this legislation may need to be amended to ensure that this does not permanently impact on the voluntary right to make an application under section 12, and also to ensure it does not adversely affect the statutory redundancy calculation.

For further details on employer rights and obligations during layoff, short-time and redundancy have a look at our previous article entitled “Covid 19 – A timely reminder of employer obligations in respect of layoff, short time and redundancy”.

Authors – Anne O’Connell & Ethna Dillon

30th November 2020

Anne O’Connell Solicitors

19-22 Lower Baggot Street, Dublin 2


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