Redundancy question

thenightman

My uncle is a mechanic and has been with the same company for 24 years. He was called into a meeting last week and told he might be made redundant and if he goes quietly he won't be left empty handed. He's had nothing on paper about redundancy yet, and isn't allowed bring anyone but another colleague to a meeting they've arranged next week to discuss it again. Their will be 3 people representing the company at this meeting apparently.

The company is in no danger of going out of business but seem to want to outsource jobs instead. Just wondering what his rights are and what process the company have to follow? does he just have to accept whatever they offer?

Thanks

Nicole2020

Does he have a contract with them? Redundancy and notice of such should be in your contract. Either way, you have a basic entitlement, copied the below from citizens information :

The statutory redundancy payment is a lump-sum payment based on the pay of the employee. All eligible employees are entitled to:

Two weeks' pay for every year of service they have since they were 16 and
One further week's pay
The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).

Pay refers to your current normal weekly pay including average regular overtime and benefits-in-kind, but before tax and PRSI deductions, that is your gross pay.

The statutory redundancy payment is tax-free.

Mrs OBumble

It may be that if he's agreeable, he gets far more than statutory redundancy, and alfo a good reference.

Where as if he insists on "rights" he gets exactly what he's entitled to, and no reference.

splinter65

thenightman wrote: »

My uncle is a mechanic and has been with the same company for 24 years. He was called into a meeting last week and told he might be made redundant and if he goes quietly he won't be left empty handed. He's had nothing on paper about redundancy yet, and isn't allowed bring anyone but another colleague to a meeting they've arranged next week to discuss it again. Their will be 3 people representing the company at this meeting apparently.

The company is in no danger of going out of business but seem to want to outsource jobs instead. Just wondering what his rights are and what process the company have to follow? does he just have to accept whatever they offer?

Thanks

His statutory redundancy entitlement is 49 weeks wages tax free up to a max of €600 per week. Anything more then that will be a bonus.
That’s unless he has a contract promising him more. Don’t sign anything until he’s got his money. He needs to have an RP50 completed in order to get JSB from SW while he’s looking for another job. If his redundancy is more then €50000 he will be disqualified from a few weeks JSB unless he’s over 55.

Bass Reeves

He is also entitled to eight weeks notice, he may be expected to work it but if not it may be paid as part of the redundancy payment. Therefore including redundancy and notice period he is entitled to 49 by 600 euro max +8 weeks pay minimum and maybe annual leave entitlement as well.

However it should also be realized that if not all employees are being made redundant the selection process must be fair. If OP's Uncle thinks he is being selected unfairly them then he need not accept any offer they make him. If he is being selected he would be in the position to negotiate a deal well above statutory redundancy.

Strictly speaking where work is being outsourced an employee is entitled to move with the work and his terms and conditions are preserved for two years. However in the case of a trade person s redundancy deal is preferably

thenightman

He has a contract alright. He's never been in a situation like this before and has been asking family for advice. So he may as well attend the meeting and see what is offered anyway.

Bass Reeves

thenightman wrote: »

He has a contract alright. He's never been in a situation like this before and has been asking family for advice. So he may as well attend the meeting and see what is offered anyway.

Yes he may as well. However he has to be careful, he may be pressurised to sign a deal there and then. I dislike that he may only bring in a work colleague and statements like he will not be left empty handed.

thenightman

That's what rang alarm bells for me when I heard it. I've told him not to agree to anything or sign anything on the spot no matter what they say or how they phrase things. They seem very keen on meeting as soon as possible with little time to think as well. He's asked for a call back from citizens advice too regarding his options.

Nicole2020

thenightman wrote: »

That's what rang alarm bells for me when I heard it. I've told him not to agree to anything or sign anything on the spot no matter what they say or how they phrase things. They seem very keen on meeting as soon as possible with little time to think as well. He's asked for a call back from citizens advice too regarding his options.

This is good advice.

What Bass Reeves said is worth looking into as well re. the selection process of redundancy. And I could be wrong here but I remember years ago they made people redundant in a place I was working and for 2 years they couldn’t fill that position with a permanent contract, it had to be a different job or acting position. To my knowledge, If you make someone redundant you’re saying their position is no longer needed for at least 2 years, you can’t just make people redundant and then outsource / fill it with someone else who’s cheaper. But I could be wrong on this.

Bass Reeves

OP is he the only mechanic with the company is there others. Are they working in the company longer than him or are they there a shorter time. I get the impression your uncle may be a single man.

Has he kept up to date with technology in the industry, is he on a better wage than younger colleagues. These may be reason they want to make him redundant but they are not valid ones. Making people redundant has to be fair. It also has to be voluntary if possible. What I mean by this they cannot select someone if there is a possibility that another person wit the same skillset might have taken it voluntary. The rule of last in first out would still apply on a like for like basis.

thenightman

He's most senior one there and was always off on courses about electric cars and that craic, he's a very good mechanic and loves cars in general. Think there's him, 2 or 3 ft mechanics there a few years and a few apprentices. The apprentices have been cut, and his boss, the service head was called in for same meeting on Friday, but he handed in a letter with demands like X month's pay or whatever and bosses agreed to talk about it.

He's not single, he has a partner and young family + mortgage.

blindsider

Agree and sign nothing on the day. Ask for a clear offer in writing, with 1 week to think about it. Whatever they offer, I'd be looking for more - 24 yrs service is not to be sniffed at - fair play to him.

Your uncle does need advice though - maybe Citizen's Info, or a union....tax etc can be tricky and remember there are other things the company can offer besides hard cash (which might be taxable)...training courses etc - often called re-skilling/re-deployment training etc

BOL to him!

thenightman

He was offered a decent sum (above what they have to offer him) and already has 3 job offers, so he's strangely happy enough. He brought one of his workmates in as a witness to the meeting too.