Redundancy Question-Fixed Term Employee

Dannymole22

I am currently employed on a fixed-term contract but the company I am working for is being shut down.

All employees except myself, including those doing the same job as me are receiving an ex-gratia redundancy payment as well as other payments such as retention bonuses and payment in lieu of notice.

I understand I am not entitled to statutory redundancy but from some research online I've found the Employment Law Statutes state a fixed term employee cannot be discriminated against on certain grounds(redundancy being one) where there is a comparable employee (pretty sure there is a comparable employee to me)

Was just wondering has anyone experience or advice of this situation?

Thanks in advance

FishOnABike

The situation might depend on when your fixed term contract ends in relation to when the company is wound down and if there are any break clauses in your contract.

Dannymole22

FishOnABike wrote: »

The situation might depend on when your fixed term contract ends in relation to when the company is wound down and if there are any break clauses in your contract.

I am due to finish the same day all other enployees are being made redundant and pretty sure I have no break clauses in my contract.

FishOnABike

Dannymole22 wrote: »

I am due to finish the same day all other enployees are being made redundant and pretty sure I have no break clauses in my contract.

You may need to get legal advice on the contents and exact wording of your fixed term contract.

If your fixed term contract is not due end until after all other employees have been made redundant and there is no break clause in the contract which would allow the company to termanate your employment before the end of the contract you may be legally entitled to be paid up to the end of your fixed term, even if there is no work for you to do or the company has closed its doors.

I am not a solicitor but if I was in your shoes and there was a significant sum of money involved I'd get a legal opinion on it.

You would have to factor in how likely it is that the money is there to pay you if the company is being closed down, even if you would be legally entitled to it. If there is a liquidator or receiver involved what you might recover from them. There may be other options depending on the structure of the company, how and why it is closing and the assets the company has.

There are lots of potential variables and options. If you have a copy of your contract a first consultation with a solicitor who specialises in employment or contract law would be worth while if the sum involved is significant. A first consultation is often free or at minimal cost.

LiamaDelta

They're not discriminating against you, they are treating you in the same way as everyone else so that doesn't apply. However as fish pointed out, you might be entitled to be paid for your full contract. If the company doesn't have the cash though it'll just be a moral victory for you really.

LiamaDelta

They're not discriminating against you, they are treating you in the same way as everyone else so that doesn't apply. However as fish pointed out, you might be entitled to be paid for your full contract. If the company doesn't have the cash though it'll just be a moral victory for you really.

Dannymole22

LiamaDelta wrote: »

They're not discriminating against you, they are treating you in the same way as everyone else so that doesn't apply. However as fish pointed out, you might be entitled to be paid for your full contract. If the company doesn't have the cash though it'll just be a moral victory for you really.

Section 6 of the Fixed Term Employment Act States
(1) Subject to subsections (2) and (5), a fixed-term employee shall not, in respect of his or her conditions of employment, be treated in a less favourable manner than a comparable permanent employee


Law Society of Ireland has released this in relation
"The Act defines “conditions of employment” as including conditions in respect of
remuneration and matters relating thereto, including pension scheme arrangements.
“Remuneration” includes any consideration, whether in cash or in kind, which the employee
receives directly or indirectly from the employer in respect of his/her employment. The term
has been interpreted broadly by the Irish and European Courts. It has been held to include
payments which are either contractual or voluntary in nature and to include travel
allowances, bonus payments, provision of a car, overtime payments, free accommodation
option, skills allowance, redundancy lump sum payments, hire purchase loans and sick pay
as well as payment of an ex-gratia lump sum on termination of employment. "

As you can see this is where it is evident I am being treated in a less favorable manner as I am not receiving any ex gratia payment, retention bonus, performance bonuses that a permanent employee performing the exact same job is receiving

LiamaDelta

Dannymole22 wrote: »

Section 6 of the Fixed Term Employment Act States
(1) Subject to subsections (2) and (5), a fixed-term employee shall not, in respect of his or her conditions of employment, be treated in a less favourable manner than a comparable permanent employee


Law Society of Ireland has released this in relation
"The Act defines “conditions of employment” as including conditions in respect of
remuneration and matters relating thereto, including pension scheme arrangements.
“Remuneration” includes any consideration, whether in cash or in kind, which the employee
receives directly or indirectly from the employer in respect of his/her employment. The term
has been interpreted broadly by the Irish and European Courts. It has been held to include
payments which are either contractual or voluntary in nature and to include travel
allowances, bonus payments, provision of a car, overtime payments, free accommodation
option, skills allowance, redundancy lump sum payments, hire purchase loans and sick pay
as well as payment of an ex-gratia lump sum on termination of employment. "

As you can see this is where it is evident I am being treated in a less favorable manner as I am not receiving any ex gratia payment, retention bonus, performance bonuses that a permanent employee performing the exact same job is receiving

Apologies,yes that's correct - I misunderstood you, I thought you were querying the redundancy itself. Have you raised this with them? How long were you working there?

Dannymole22

LiamaDelta wrote: »

Apologies,yes that's correct - I misunderstood you, I thought you were querying the redundancy itself. Have you raised this with them? How long were you working there?

No not yet.

Have attended the standard redundancy consultation meetings with HR and was told every time I asked that I'm not entitled to anything. I only found this through my own research.

Will be here 2 years at the end of the year.

FishOnABike

Dannymole22 wrote: »

No not yet.

Have attended the standard redundancy consultation meetings with HR and was told every time I asked that I'm not entitled to anything. I only found this through my own research.

Will be here 2 years at the end of the year.

I think you need to be there two years to be legally entitled to a redundancy payment but as pointed out above you shouldn't be treated any less favourably with regard to any ex-gratia payments.

It might be worth while looking into which would be more favourable to you, the ex-gratia payment or payment to the end of your fixed term. Get sound legal advice and put your case to HR.

davo10

Op, the rights and entitlements of an employee employed on a fixed term contract are broadly similar to those employed on a contract of indefinite duration, except for one very important aspect, you have a defined termination date on your contract beyond which you are no longer employed by the company. If your contract concludes on the date the company closes, and you have not worked there for more than two years, you do not have an entitlement to redundancy nor any other payments. That is not discrimination, that is the nature of fixed term contracts and importantly, that is what you agreed to when you signed the contract. Like all employees they must pay you your wages in full, all holiday time accrued etc, but that is pretty much it.


http://www.citizensinformation.ie/en/employment/employment_rights_and_conditions/contracts_of_employment/fixed_term_or_specified_purpose_contracts.html