Page 213 - Socially-responsible-restructuring-Effective-strategies-for-supporting-redundant-workers

Socially responsible restructuring
Effective strategies for supporting redundant workers

redundancies invoke More than 5 employees in respond within a set time combination of monthly
additional requirements establishments with more than and have to give valid salary multiplied by
on consultation and 20 but fewer than 60 grounds for objecting to a completed years of service –
information disclosure employees. redundancy. A social plan is usually with a fraction
and for establishments Involving 10% or more developed between the applied (such as 50-70% of
with more than 20 employees or more than 25 in employer and works council salary).
employees, the interests establishments with at least 60 and covers provision for
of the employees must be and fewer than 500 employees; payments and other support
considered and a social At least 30 employees in measures.
plan developed that establishments with at least
normally sets out the 500 employees.
terms of severance. The redundancies must take
place within 90 days otherwise
another notice may be
required.

Ireland

Definitions Notification Consultation Statutory payments
The relevant legislation The employer must notify the The employer must inform Under the Redundancy
(The Protection of redundancies in the following and consult with the Payments Act any employee
Employment Acts of 1977 circumstances: employee representatives at with more then 2 years
and 2007) defines Where at least 5 employees least 30 days before the first continuous employment with
collective redundancies are being made redundant in notice of dismissal is issued. the same employer may be
as involving at least 5 an establishment with 20-50 All relevant information must eligible for statutory
employees. employees; be supplied, including the payments according to the
Where at least 10 are being reasons for the following criteria:
made redundant in redundancies, the selection Two weeks pay for each
establishments with 50-100; criteria and the basis for completed year of service
Where at least 10% are being calculating redundancy from age 16, plus one
made redundant in payments. week’s pay. However, the
establishments with 100-300; maximum weekly pay is
Where at least 30 are involved capped at Euro 600
in an establishment with 300 or irrespective of usual
more. earnings. The payments are
tax free to the employee and
the employer can claim up to
60% of the cost from the
fund. Negotiations and
provisions in existing
collective agreements may
enhance these payments.

Latvia

Definitions Notification Consultation Statutory payments
The relevant section of Employers who plan to make Consultation with employee The employer is required to
the Labour Law sets out redundancies must notify the representatives is a give severance pay to at
the terms of what PES and local government requirement and this must least the following criteria:
constitutes a collective office according to the following be enacted in good time and 1 month’s average earnings
redundancy. circumstances: include the reasons for the where length of service is
At least 5 employees where job losses, the numbers less than 5 years;
the establishment employs affected and the timetable. A 2 months’ average earnings
between 20-49; social plan may also be for 5-10 years service;
At least 10 employees where formulated – though there is 3 months’ average earnings
50-99 are employed; no legal requirement for this for 10-20 years service;
At least 10% of employees to be done. 4 months’ average earnings

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