Redundancy when there is work available?

M

mickeymouse

Registered User
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16
A friend of mine works for an IT contracting/consulting company and is based on a particular client site for the last 10 months. He is a staff employee, paid monthly in euro, however the company’s head office is based in the UK with all admin and support services being run from there. Currently there are only 6 employees working in Ireland and all are ‘’billable’’ at the moment and at least until July. In my friends particular case, the client has requested an extension of his contract until August. However he has recently heard that there is a very strong possibility that his company will close down its Irish operations in the very near future due to the fact that they no longer desire a presence in Ireland. My question is can they do this when effectively all employees are working at the moment and there are no people without work. Surely, I would have thought, in the contracting/ consulting industry a person would have to be out of work and to all intents and purposes an overhead, before they could make them redundant.
 
I suppose the Irish operations are not profitable or profitable enough to warrant a presence.
Our company has loads of work available, but because of the costs involved (primarily high cost of labour) we will not entertain it. No profit.
 
Hi Leghorn
Thanks for the response. From what I understand the irish operations would be a lot more profitable than their UK operations (% wise). As currently 100% of the workforce in Ireland are currently billable and there are no O/H such as offices/ electricity/ heat etc. In contrast, there are numerous employees on the bench in the UK with no work.
 
Any chance the contractors could work directly for the client?
I suppose the client doesn't know the contracting company's intentions just yet.
 
Hi Mickey Mouse,

I would say that the company would be well within their rights to wind up the Irish operation without really giving a "valid" reason. My understanding is that they do not have to give their employees a reason. What they do have to do is treat their employees correctly in winding up that business.

This could be very good for your friend - get a decent redundancy package from this company and continue working for the client either as a contractor or as a staff member.

Jinty.
 
That’s for the responses however, the client would properly not pay anywhere near the rate they are currently paying direct to the consulting company. And would prob take advantage of this fact knowing the employees would be now desperate. Redundancy is only statutory so no major win there either. Employees would lose all their favourable benefits and conditions.
 
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