Pay cuts before compulsory redundancy

N

nick468

Registered User
Messages
13
Hi there,

I was just wondering if there is now any onus on employers to seek pay cuts before they bring in compulsory redundancies?

My employer is due to offer voluntary redundancy, but I understand that the settlements will be paltry. So my fear is that they will instead make people compulsorily redundant.

Is it entirely at the employers discretion whether they speak of pay cuts/shorter working weeks or not before compulsory redundancies are brought in or is there any legal framework which may suggest pay cuts/pauses/freezes can instead vbe used?

NICK
 
Hi, just a quick note to clarify further on the legal framework aspect: If your company is planning on making a sufficient number of redundancies such that it would qualify as a collective redundancy, they would then be obliged to engage in a consultation process with the employees. One of the obligations within that process is to fully investigate as to whether other measures (ie pay cuts etc) may be a feasible route instead of redundancies.

This obligatory consultation period is often just used to rubberstamp the company's decision, ie they only pay lip service to the process, so your mileage may vary in terms of it actually producing real alternatives to compulsory redundancies.
 
Thanks for the information. My company is seemingly looking to make ten per cent of cuts across all its departments.

With a staff of around sixty, would this ten per cent (six staff??) count as a "collective redundancy" situation?

Nick
 
Nick, no is the answer i'm afraid.



In Ireland, collective redundancies arise where, during any period of 30 consecutive days, the employees being made redundant are:

  • 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
 
Question !

I'm in a collective-redundancy and am 'at risk' currently (their terminology for my status) of being made redundant in October.

As part of their proposals and their usual MO is to pay PILON (pay in lieu of notice) but my case differs as I'm not immediately being made redundant. Usually at the end of consultation periods in previous redundancies, the effected employee is out-the-door the very next day with a package and PILON.

Can I get PILON if I know at the end of the consultation period (next week) that I will definitely not be working past 31 October ?

If its not PILON (which strictly are damages for breach of (employment) contract, what is it - normal pay or considered as part of the redundancy package overall ?
 
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