Government approves doubling of statutory redundancy terms

Proposals to increase statutory redundancy terms to more than double the existing levels have been approved by the Government…

Proposals to increase statutory redundancy terms to more than double the existing levels have been approved by the Government.

Workers who lost their jobs in the recent past will not benefit from the measure, however, which was negotiated as part of the new partnership programme, Sustaining Progress.

Under the deal, workers made redundant will receive a minimum of two weeks' pay for every year of service. At present, they receive only half a week's pay for every year worked under the age of 41, and a week's pay for every year after that.

Unions and the Labour leader, Mr Pat Rabbitte, have criticised the delay in implementing the new terms. However, proposals by the Tánaiste, Ms Harney, to bring the increased terms into effect were approved by the Cabinet at its meeting last week.

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A Bill giving effect to the changes is expected to be published in the next few days and will be introduced in the Dáil shortly. It is hoped to have it enacted by the Oireachtas before the summer recess.

It is understood there will be no retrospective element to the Bill, which means workers who have recently lost their jobs will not be covered by its terms. Only those issued with redundancy notices after the new terms come into effect will benefit.

The increased terms were included in the seven-point plan put to employers and unions by the Government when the partnership talks were on the point of breaking down in January.

The SIPTU president, Mr Des Geraghty, called on TDs and senators from all parties to ensure the Bill has a "speedy passage" through the Oireachtas.

An increasing number of workers faced the uncertainty of redundancy, he said at the launch of a Trade Union Federation (TUF) guide to labour law for union activists. TUF is a strategic alliance of SIPTU and the Technical, Engineering and Electrical Union. Mr Geraghty said the two unions had played a leading role in the campaign to secure the redundancy improvements.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times