The Ministry of Economy and Labour has said employers are required to inform and consult employees about redundancy.

A ministry spokesman said in a statement, made in response to questions from the public, that while the Government appreciates the financial position facing some employers, the Employment Act 2000 clearly sets out their responsibilities when considering redundancies.

“Every employer has a duty to inform and consult with an employee and their representative, union or otherwise, on a proposed redundancy 14 days prior to giving the employee notice in writing that they are being made redundant,” the spokesman said.

“Under their duty to inform, the employer shall inform the employee and their trade union or other representative of the conditions of redundancy that exist, the reasons for the contemplated termination, the number and categories of employees likely to be affected and the period over which the termination is likely to take place.

“Under their duty to consult, the employer shall consult with the employee and their trade union or other representative on the possible measures that can be taken to avoid or minimise the adverse effects of the redundancy and the possible measures that can be taken to mitigate the adverse effects of the termination on the affected employees.”

The employer is not permitted to provide notice of termination for redundancy until at least 14 days after the employee and their representatives have been informed or consulted, the spokesman said.

Under the legislation, redundancies can occur under several conditions, including:

• The modernisation, mechanisation or automation of part or all of the business

• The discontinuance of part or all of the business

• The sale or disposal of the business

• The reorganisation of the business

• The reduction in the business as a result of economic conditions, volume of work or sales, reduced demand or surplus inventory

• The impossibility or impracticality of carrying on the business at the normal rate or at all owing to shortage of materials, mechanical breakdown, act of God or circumstances beyond the employer's control

The spokesman added that once made redundant, an employee is entitled to two weeks’ wages for every completed year of employment for the first ten years, and three week’s wages for each subsequent year up to a maximum of 26 weeks’ wages.

“This payment is exclusive of an employee's right to notice pay, which is also payable at this time,” the spokesman said.

“Where an employee's contract of employment or collective agreement provides for a higher amount of payment than what is specified in the Employment Act 2000, that amount should be provided.

“The Department of Labour provides information to employers and employees anonymously per the Employment and Labour Code, and employers are urged to contact this office for any assistance.”

The department’s offices are at 23 Parliament Street and are open from 8.45am to 5pm.