In 2023, the jobs market was shocked when the tech sector started letting go of staff. Ireland now accounts for 40% of the redundancies of tech layoffs across the EU over the past three years.

Since the beginning of 2024, Google, PayPal, LinkedIn and TikTok have announced job cuts in Ireland.

Now, we are seeing the same in the agri jobs market.

There have already been some job losses in the milk-processing sector with more expected due to lower levels of supply and the restructuring of business operations.

The recent announcements include Tirlán offering 150 voluntary redundancies with more cuts expected over the next few weeks.

Last year, there were 78 jobs cuts at Lakeland Dairies with another 20 in June. Dairygold has cut staff working hours due to a milk supply drop. And further layoffs are expected across the industry.

With workers in the sector fearing redundancies and potential layoffs, it is beneficial for employees to know their rights and entitlements.

Collective redundancies

An employee may be part of a collective redundancy if their employer is making a certain number of workers redundant during a period of 30 consecutive days.

The relevant minimum number of proposed redundancies versus the size of the overall workforce is as follows:

  • 5 employees where 21-49 are employed.
  • 10 employees where 50-99 are employed.
  • 10% of the employees where 100-299 are employed.
  • 30 employees where 300 or more are employed.
  • There are a few things that an employer has to do, according to the Protection of Employment Act 1977. An employer must:

  • Consult and provide information to employees and their representatives for 30 days before any notice of redundancy can be issued.
  • The consultation with employees’ representatives should include the possibility of avoiding the proposed redundancies, reducing the number of employees affected or mitigating their consequences.
  • Notify the Minister for Enterprise, Trade and Employment of the proposals at least 30 days before the first dismissal takes effect.
  • To break down all this jargon, it essentially means that they have to give people notice and to do what they can to avoid the redundancies or keep levels as low as possible.

    Consultation period

    If you are in the position of facing a potential redundancy, it is important to be aware of the consultation period and process.

    Firstly, this ensures companies have explored the possibility of avoiding redundancies and all other options before letting go of staff members.

    Secondly, it ensures an agreement is made with an employee’s representative. The important thing to note is these consultations must take at least 30 days before the redundancy notice is given.

    As set out by the Protection of Employment Acts 1977-2024, there is a list of information your company needs to provide in writing to the representative. This includes:

  • The reasons for making you redundant.
  • The number and descriptions of the staff affected.
  • The period in which the redundancies will happen.
  • The criteria for selection of employees for redundancy.
  • The method of calculating any redundancy payment.
  • They also have to inform the Minister for Enterprise, Trade and Employment in writing 30 days before the occurrence of the first redundancy.

    Emer Higgins, Minister of State at the Department of Enterprise, Trade and Employment and Equality and at the Department of Social Protection.

    Types of redundancies

    There is a difference between a voluntary package and an involuntary package.

    In a voluntary package, there is no room for negotiation – the company says: “We want X redundancies, and we will pay Y salary weeks per year of service to those who leave.”

    It is up to workers whether they want to accept that or not. The company can also refuse a worker who applies for voluntary package.

    On the other hand, forced redundancies occur when a worker is told their job is gone. Normally this leads to more negotiation and a larger payout (unless a company is closing down entirely, in which workers might only get statutory payouts).

    In a forced redundancy situation, the company cannot fill the position of the worker who was made redundant.

    If a person is three years or less away from retirement, then unfortunately, their redundancy package would be reduced.

    Let’s take an example of a worker who has a redundancy package of 80,000.

    If that worker has three years left until retirement, they will not be offered the full amount; instead they will be offered 75%, which is €60,000.

    With two years left to retire, it is 50%, amounting to €40,000; and with one year left, it would be just 25%, totalling €20,000.

    A worker who is about to retire would be offered nothing as they are leaving anyway.

    Supports available

    In the event of a dispute between the employer and employee about redundancy, employees can refer a complaint to the Workplace Relations Commission for a determination by an adjudication officer.

    Further information can also be found at Redundancy Payments – DETE (enterprise.gov.ie) and at Redundancy and Insolvency Overview: Employee Entitlements (gov.ie).

    If you are made redundant, the Government provides a range of supports including training and development opportunities and income support through the Intreo service of the Department of Social Protection.

    New legislation

    The new Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 took effect on Monday, 1 July.

    This legislation strengthens the protection of employees in a collective redundancy situation when their employer goes bankrupt.

    It also sets up a new statutory Employment Law Review Group to advise the minister on various aspects of employment and redundancy law.

    Minister of State for Business, Employment and Retail, Emer Higgins, emphasises this new legislation strengthens the legislative protections and safeguards for employees in redundancy situations.

    “Being made redundant can be a difficult experience for workers,” she says. “This act improves transparency and communication for workers facing collective redundancies caused by their employer’s insolvency.

    It also gives all workers the right to take a case to the Workplace Relations Commission if they are made redundant during the 30-day notification period.

    “This act makes targeted and balanced changes to the State’s collective redundancy rules, which enhances our employment legislation and ensures that workers’ rights are upheld.”

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