Carphone Warehouse redundancy consultations with Irish staff continue

Carphone Warehouse Ireland employees will receive an "enhanced redundancy package" over and above the statutory payment, the retailer said on Wednesday, as consultations with staff continue.

The statement, issued through its UK parent Dixons Carphone, follows concern among some employees that their redundancy pay will be lower than they originally expected. The company said no terms have been changed.

Carphone Warehouse confirmed last month that it is closing 81 outlets in the Republic and exiting the market, with as many as 486 employees due to lose their jobs.

At the time of the announcement, it was anticipated that some staff would be redeployed under new contracts to Currys PC World, which is also owned by Dixons Carphone and has 10 stores here. However, it remains unclear how many redeployments will occur.

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No redundancies have taken place yet, while some staff, including store managers, have continued to work for Carphone Warehouse since the announcement on April 21st to help facilitate the return of stock to the UK and other tasks relating to the closure of the Irish operation.

“We are still in the consultation period and our priority continues to be to support our colleagues throughout this process,” the company said.

‘Enhanced’ package

“As we explained at the time of the announcement, in line with our policy we will try to redeploy colleagues, where that isn’t possible, all colleagues will receive an enhanced redundancy package. All colleagues also have access to an outplacement programme to help them find new work.”

Statutory redundancy allows for two weeks’ pay per year of service, plus a further week’s pay, subject to a weekly earnings cap of €600.

It only applies to employees with at least two years’ service, although it is understood Carphone Warehouse will make a payment to staff with shorter service.

In April, Dixons Carphone blamed changes in shopping habits for its exit from the Republic, describing the decision as “difficult but necessary”.

It subsequently said it had repaid €3.75 million in pandemic wage subsidies to the Government, in line with its policy in the UK, citing sales growth at Currys PC World and the overall “strong financial position” of the company.