Legal Article - Employment Law

Miscellaneous Provisions Act 2009

Under the Miscellaneous Provisions Act 2009, if the employer accepts liability for a redundancy payment and makes a satisfactory payment at or soon after the date of dismissal, there is no need for the employee to submit a formal claim. In any other case, if an employee does not make a written claim for a redundancy payment to the employer or make an application to an industrial tribunal within a period of six months beginning with the date of termination of the contract of employment, then the employer in most cases ceases to have an obligation to make a payment.

If the employer has cash-flow problems so serious that making the redundancy payment would put the future of the business at serious risk, arrangements can be made by the Department of Trade and Industry to pay the employee direct from the Redundancy Fund.

The employer must show that he cannot get any further credit. It is not enough merely to show that the firm is trading on an overdraft. The employer will be expected to pay back the amount owed as soon as possible, if necessary in instalments. If the employer is insolvent, the payment is made by the Department and the debt is recovered from the assets of the business.

Employers must notify the Department of Trade and Industry of proposed redundancies (on Form HRI) at least 30 days prior to the first dismissal where 20 or more employees are to be made redundant over a 90 day period, or at least 90 days where 100 employees or more are affected over a 90 day period.

Published: 02 Jun 2011


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