Let's Talk Redundancy
Redundancy occurs when an employee loses their job due to circumstances such as the closure of the business or a reduction in the number of staff. There are many reasons why an employee could be made redundant, such as the financial position of the company, lack of work, reorganisation with another organisation, or the company closing completely. Being made redundant can be an extremely tough situation for the employee, it is important as an employer to understand how the employee may feel at this time and make them aware of the support that is available to them.
Who is eligible for redundancy?
An employee is entitled to a redundancy payment after they have two years’ service. To be eligible for a redundancy payment:
- The employee must be over the age of 16,
- Be in employment that is insurable under the Social Welfare Acts,
- Have worked continuously for their employer for at least 104 weeks over the age of 16
- Your role has been made redundant
Part-time workers cannot be treated any different to the full-time workers but still must meet the requirement of the two years’ continuous service.
Redundancy Procedures
Employers must follow certain procedures when making an employee redundant. They must be fair and reasonable upon the selection of choosing people to be made redundant.
Some examples of fair selection include:
- Last in, first out - The newest staff is the first to go
- Voluntary redundancy
- Point system - Employees doing the same job are ranked by objective criteria such as attendance record, the standard of work done, skills and qualifications.
If employees feel they have been unfairly selected for redundancy you can bring a claim of unfair dismissal.
Notice of redundancy
The notice period (time given to employees before they are made redundant) goes up depending on how long the employee has worked for the employer.
- Between 2-5 years – 2 weeks’ notice
- Between 5-10 years – 4 weeks’ notice
- Between 10-15 years – 6 weeks’ notice
- Over 15 years – 8 weeks’ notice
Offering alternative work
Before the role can be made redundant, the employer may offer the employee another job in the business. This is known as alternative work. This alternative work should be given to the employee in writing and provide full information about the offer.
If the employee accepts the alternative role, they may take it up on a trial basis for up to four weeks. However, the employee will not be entitled to claim redundancy if:
- They accept a new contract with immediate effect, and the terms of employment are the same as their previous contract
- They accept an offer in writing for a new and different contract which will start within four weeks of their previous contract ending.
If the employee refuses a reasonable offer of alternative work from the employer, they may lose their entitlement to a redundancy payment.
If the employee loses status, have worse terms and conditions of employment or must travel an unreasonable distance to work this will not be considered as a reasonable alternative.
10 Tips for Employee Retention
For employers, the pandemic was a test like no other. It may have been the biggest challenge faced in the world of HR. Unexpected changes to the lifestyle of the workplace meant that employees found themselves working in the comfort of their homes.
Facing challenges tends to make teams stronger. Employees learned new skills, employers invested to make remote work successful and found ways to work together no matter the circumstance. How you handle these challenges reflects the company culture and future growth of the company and having employees want to stick around.
If you are struggling to retain employees here are some tips on how to retain employees.
1. Positive onboarding experience.
Just because you have employed a new employee does not mean the hiring process is over as soon as they start. Month two is the exact same as day one. Ensuring that your employees have a positive and engaging starting experience is important to making sure your recruiting process is going well.
2. Highlight the benefits
Nowadays perks and benefits are the icings on the cake when you are attracting applicants. Whether you offer a competitive salary, hybrid working models or wellness programmes make sure to outline benefits that are suitable for everyone. Having the right benefits in the workplace can improve employee engagement.
3. Promote Flexible/ Hybrid working
Realistically the traditional office 9-to-5, five days a week is becoming a bit old fashioned and not appropriate for most people’s lifestyles. By incorporating flexible working schedules and telecommuting you may find that employees appear more productive and satisfied. It is important to detail flexible/hybrid working arrangements in the employee contracts, so no conflict arises. Bright Contracts now has a hybrid working policy in the handbook section of the software as well as a hybrid tick the box section in the contract section. A sample document detailing the hybrid arrangements is available on the Bright Contracts Ireland website.
4. Recognition
Every employee likes to be appreciated and thanked for all their hard work. Giving employees recognition for a job well done is an important part of ensuring that there is continued employee engagement. Ways of recognising employees could be appreciation at company meetings, giving out regular promotions or employee appreciation events.
5. Highlight Development
Ensure you allow your employees to further enhance their skills to become even better employees. By you supporting employee development will lead to the best employees sticking around.
6. Reward Employees
As well as offering salary incentives why not add other reward programmes to help retain employees. Rewards like offering gift cards, bonuses and additional annual leave will not only attract employees to the company but help retain employees.
7. Provide up to date equipment and software
A huge complaint at many companies is how outdated the equipment and software is within an organisation. Not only does this make employees inefficient but it also indicates that your company does not have any interest in staying up to date with the latest tools and technology.
8. Communication
There is nothing more frustrating than a company with bad communication with its employees. Make sure your company is creating channels for honest and specific feedback to and from employees. Try to focus on direct communication, one-on-one conversations when it is possible. Furthermore, provide employees with digital spaces to allow workers to come together and solve issues without having to go through management.
9. Familiarity with Senior Management
Making sure senior management know that an employee exists will help make employees feel acknowledged and results in employees being loyal and committed to the job. One of the most common complaints voiced during an exit interview is that employees do not feel acknowledged by senior management. The employee should be introduced to senior management on their first day and employees should have the chance to partake in company discussions and have their ideas listened to.
10. Allow the employee to use their talents and skills
A motivated employee wants to contribute work to areas outside of their job description. You should allow your employees to use experiences from the past to their current role to result in an overall positive employee engagement. For example, if an employee has a skill in video editing and they work in the marketing department, allowing them help or have input in the production of a company video, will overall have a positive impact on their role in the company.
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What you Need to Know About the Gender Pay Gap Information Act 2021
The Gender Pay Gap Information Act was signed into law on the 13th of July 2021. It will amend the Employment Equality Act 1998. This legislation introduced gender pay gap reporting to Ireland. The technical elements to this Bill have not been published yet but, The Act promotes the making of regulations through which reporting requirements will be specified. It is unclear what the specific reporting responsibilities for employers will be.
What is it?
The Gender Pay Gap is the difference in the average gross hourly pay of women compared with men in an organisation. It should not be confused with the concept of equal pay for equal work. The existence of the gender pay gap does not indicate discrimination by employers or that women are not receiving equal pay for equal work. Employers are required to pay employees on the same terms when they do “like work” which is defined as work that is the same, similar, or work of equal value.
What does the employer have to do?
The Act will require organisations to report on the gender pay differences between male and female employees. For the initial first two years of The Act, it will only apply to employers with 250 or more employees.
What information needs to be reported?
- Mean and median hourly remuneration for full time and part time employees
- Mean and median bonus remuneration
- Percentage of all employees who have received a bonus or benefits in kind.
The act also indicates further regulations that may be proposed to provide further clarity on:
- The class of employer, employee and pay to which the regulations apply
- How the remuneration of employees is to be calculated
- The form, manner and frequency in which information is to be published
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