Dismissals and redundancies

Indefinite contracts may be terminated by the employer on grounds ofredundancy. Should the employer intend to terminate the employment of anemployee such grounds, the employment of the last person engaged in theclass of employment affected by redundancy must be terminated first, inaccordance with the ‘last in first out’ principle. If the last person employed isrelated to the employer, the employer may elect to terminate the nextemployee in turn instead.

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If the post formerly occupied by an employee who is made redundant becomesavailable again within one year from the date of termination, such employee isentitled to re-employment in the post formerly occupied by him/her at conditionsnot less favourable than those which he/she was entitled to prior to termination.

The Collective Redundancies (Protection of Employment) Regulations S.L. 452.80apply in the case of collective redundancies which constitute the dismissal of:

  • 10 or more employees in establishments normally employing more than20 but less than 100 employees;
  • 10% or more of the number of employees in establishments employing100 or more but less than 300 employees; and
  • 30 employees or more in establishments employing 300 or moreemployees.

The Regulations stipulate that the employer must consult the employee’srepresentative and notify them and the Director of DIER of the termination ofemployment being contemplated. Consultations must commence within 7working days of such notification, and the Employer must provide a writtenstatement to the employee’s representative including information such as thenumber of employees to be made redundant and how redundancy payments willbe settled. Collective redundancies may only take place within 30 days from thedate of notification.

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