Tupe and Redundancy

Payton

Quick senario. Im working for Company A for a number of years who takes over Company B and we (4 employees) are Tupe'd over to Company B 3 yrs ago.
Company A now wants make us redundant and are offering 2 weeks redundancy per year of service plus 2 weeks statutory per year of service.
A number of years ago around 40 people were made redundant from Company B where they received 4 weeks per year of service and 2 weeks statutory per year of service which as employees of Company B we feel we are should receive the same arrangement.
Ive tried to find some information online regarding what we are entitled too but I cant find much only some snippets.
Could someone throw some light on this if possible?

Dublin Lad2021

Hi OP,

Sorry to hear about your redundancy.
Okay so I was a HR manager in a company and something like this happend. So when people TUPEd over there was an agreement with the trade union where their new employer (us) would honour their current redundancy terms for up to say 3 years. However it didn't say what would happen after 3 years which was a point of contention
Regarding your situation it might be worth looking at your original TUPE agreement.
I'm sure a ton of people can give more advice so I'll just leave it there and maybe someone else can advise

Dav010

Tupe entitles employees of companies taken over to employment/agreed contract rights which they enjoyed with their original employer before the takeover.

When you say you were “tuped” over to company B, what do you mean by this? Usually it is the employees that are employed by the company which is being taken over that are protected by the regulations rather than those who are employed by the company doing the take over.

To my knowledge, it does not convey the same rights to employees of the company which did the taking over. In your case, as you worked for the buyer before the take over, your rights to redundancy are whatever is outlined in the contract of employment you signed when joining the buyer.

Dav010

Dav010 wrote: »

Tupe entitles employees of companies taken over to employment/agreed contract rights which they enjoyed with their original employer before the takeover.

When you say you were “tuped” over to company B, what do you mean by this? Usually it is the employees that are employed by the company which is being taken over that are protected by the regulations rather than those who are employed by the company doing the take over.

To my knowledge, it does not convey the same rights to employees of the company which did the taking over. In your case, as you worked for the buyer before the take over, your rights to redundancy are whatever is outlined in the contract of employment you signed when joining the buyer.

YES, 100% CORRECT. Whatever happened historically in the 'taken over' company is irrevelant. The OP's rights / entitlements to redundancy payments are the same as they were one month BEFORE the takeover and one month AFTER the takeover.....the takeover of a company ( company in no way bestows an advantage to the original employees of company A. Personally, I also think people should Steer clear of the language of " two weeks PLUS statutory"..... it's two weeks REDUNDANCY. The statutory payment is your entitlement by law, something you've been contributing to in the form of PRSI.... Its nothing whatsoever to do with the employer. Being made unemployed is an awful experience & 2weeks per year certainly can't be described as an employer being generous. Best of luck OP

@€

Just to clarify a point that sometimes gets lost in calculating redundancy payments re STATUTORY redundancy...... this payment IS CAPPED @€;600 per week but this part ( the STATUTORY payment) is NOT liable to taxation. It is also to be calculated at 2weeks per year served PLUS one week on top. I.E. - after 10years service the STATUTORY is CAPPED at a max payment of €12,600 ( 10yrs x 2weeks @€;600+ the one week €600). If the weekly wage GROSS was less that €600 per week then that figure is used for the entitlement payment.

head82

Ken Mc Carthy wrote: »

YES, 100% CORRECT. Whatever happened historically in the 'taken over' company is irrevelant. The OP's rights / entitlements to redundancy payments are the same as they were one month BEFORE the takeover and one month AFTER the takeover.....the takeover of a company ( company in no way bestows an advantage to the original employees of company A. Personally, I also think people should Steer clear of the language of " two weeks PLUS statutory"..... it's two weeks REDUNDANCY. The statutory payment is your entitlement by law, something you've been contributing to in the form of PRSI.... Its nothing whatsoever to do with the employer. Being made unemployed is an awful experience & 2weeks per year certainly can't be described as an employer being generous. Best of luck OP

My apologies to the OP for going off topic here but regards the highlighted part in the above comment.. it was my understanding that Statutory redundancy was to be paid by the employer unless they were unable to do so, insolvency etc.
Only then would if be paid by the Department of Social Protection and employer would be indebted to DSP for repayment.

Do I have this wrong?

head82

head82 wrote: »

My apologies to the OP for going off topic here but regards the highlighted part in the above comment.. it was my understanding that Statutory redundancy was to be paid by the employer unless they were unable to do so, insolvency etc.
Only then would if be paid by the Department of Social Protection and employer would be indebted to DSP for repayment.

Do I have this wrong?

Yes.....it IS paid by the employer.....my point was/is that the amount & whether it is paid is not something that's in the remit of the employer , its a matter that is enshrined decided/ legislated by law.