Sinn Féin proposal to safeguard workers’ redundancy rights

Sinn Féin has introduced proposed legislation which it says would close an existing loophole that could mean workers receiving the pandemic unemployment payment lose out on “significant sums” in future redundancy payments.

Sinn Féin’s proposed new legislation would seek to boost the redundancy rights of workers laid off for prolonged periods of time. It would also make it an offence for an employer to wrongfully deprive employees of their redundancy entitlements.

Sinn Féin spokeswoman on workers’ rights Louise O’Reilly said on Thursday that at present time spent by workers on the pandemic unemployment payment would not count when calculating entitlements.

She said the Bill that the party introduced on Thursday would “seek to make that time reckonable service, and thereby contribute to a fair redundancy entitlement, if future circumstances deem a worker needs access to a redundancy payment”.

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She said her proposed legislation would also seek to deal with “unscrupulous employers” who sought to con their employees into making themselves redundant against their wishes and so avoid liability for redundancy payments.

Ms O’Reilly said that since the onset of the Covid-19 crisis a number of issues had arisen for workers who had been laid off or who were on short time such as those in receipt of the pandemic unemployment payment. She said in the main, many workers were unsure of their rights in relation to their redundancy payments.

“Some workers are unsure as to whether they can undertake new employment and still be entitled to their redundancy payment, to be paid when the emergency period is over, others have outlined how their employer tried to make them declare themselves as having resigned, and thereby involuntarily forgo their redundancy payment, while a significant number are concerned that they have lost up to a year of reckonable service for the calculation of any future redundancy payment due to time spent on the pandemic unemployment payment [scheme].”

“The Redundancy Payments (Lay-off, Short Time and Calculation of Reckonable Service) Bill which I am bringing forward seeks to address these issues and offer clarity, assurance and fairness for workers,” she said.

“It seeks to insert a declaratory provision to remove any doubt that where, during a period of lay-off or short time, a worker takes up employment with another employer, that worker will not lose their entitlement to their redundancy payment. This provision will offer clarity and assurance for many workers who have been offered new employment, but they are afraid to take it in case they lose their redundancy payment.”

‘Unscrupulous employers’

Ms O’Reilly said the Bill also sought to create an offence for an employer to treat an employee as having had resigned, and thereby forego their redundancy entitlement.

“This situation has been raised with me by some workers, particularly in sectors with low levels of trade union coverage. They have outlined how unscrupulous employers tried to con them into making themselves redundant, unbeknownst to them and against their wishes; this would have had the result of these workers losing their redundancy entitlement,” she said.

A spokeswoman for the Department of Employment said the issue was “legally complex for several reasons”.

She said the department was "considering the full implications before any decision, including any proposal to amend redundancy legislation, is made. The department will also discuss with trade union and employer representatives and the Department of Social Protection. "