Collective Redundancy Case Study

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Team 10: Case B Name Student No. Signature Sarah Brosnan 14102985 Laura Heduan 11337321 Brianna O’Brien 09562290 Daniel Harrison 12419648 Carol O’Donnell 14102200 Table of Contents Part A 3 Part B 6 Part C 8 Part D 10 References 12 Part A Q. The general criteria that applies when the termination of an employee’s employment constitutes a 'redundancy'. Redundancy is defined under the Redundancy Payments Act 1967-2012. The term 'redundancy' is only applicable when it is a situation where the job no longer exists. Under this act a wide range of situations…show more content…
For redundancies to be classified as collective redundancies there needs to be 5 employees being made redundant where 21-49 people are employed. Precision Components Ltd employs 48 people, which means their company falls under these requirements and as they are making only two employees redundant, therefore this does not constitute collective redundancies. ii) Make ten additional staff redundant in six months, would these constitute ‘collective redundancies’. If James were to make a further 10 staff members redundant in six months this would only constitute as being a collective redundancy if he were to make the 10 employees redundant within the same 30 day period. Collective redundancy legislation applies when the number of employees made redundant exceeds the threshold for the establishment. In this case Precision Components Ltd employs 48 people which falls into the 20<50 category and this states that there needs to be 5 employees or more made redundant, therefore making a further 10 members of staff redundant would constitute as collective redundancy if this is done in the same 30 day period within the 6…show more content…
It is vital that an employer follows these requirements or else they could land themselves in hot water. As previously stated there is a minimum of two weeks overriding notice. If it is a collective redundancy the employer must give 30 days’ notice to the minister and employees alike. Employees are entitled to receive pay in lieu during this time. The minimum two weeks’ notice cannot be abridged by the payment in lieu. James can also arrange severance agreements with his employees. This documents the arrangements between an employer and an employee if the contract of employment is terminated. An example of this would be Shortt v Data Packaging case of 1996. In this case the employee had signed a severance agreement. However they claimed that they had been pressured into signing. The EAT claimed the employee should have been able to exercise his own free will. So as you can see an employer needs to be very careful when notifying employees of redundancy. If James is going to make these employees redundant he needs to make sure he goes about it the right

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