Q. I have been in my current role in a large tech company for about 10 I was headhunted into the firm to head my section. I have been commission–based and have always had very high metrics. Over the last few years, various people in my section have moved onto other work. It now looks like my section of the business is going to be wound down. I have been asked if I wanted to move sideways into another role, which I am considering, but it would mean a big drop in wages as I would be losing my commission. I have also been informed that I might be made redundant and have been told I will be ‘looked after’. What are my options here?
Dear Reader,
Redundancy should only be offered by your employer when there is no longer a position available for you, either due to the business folding or a reduction in the number of staff. Redundancy is a decision taken by your employers.
It does seem in your case that the redundancy is genuine, i.e. your role – indeed your entire section – is essentially being done away with.
Your employer would need to confirm that you have been properly selected for redundancy. Again, given that your side of the business is being done away with, your employers should have no difficulty in that.
Your employer is obliged to confirm whether there is ‘suitable alternative employment’ within the company, i.e. a role available for you with similar pay, location, and terms. You cannot ‘unreasonably’ refuse the alternative employment – what is considered ‘reasonable’ will depend on the circumstances. If there is a substantial drop in pay, with no indication that it would be made good, you are entitled to refuse the alternative employment on the basis that it is not ‘similar’.
You are entitled to trial such alternative employment for a period of a number of weeks.
If you have been working for around 10 years, you are entitled to a statutory minimum payment of around 21 weeks wages, capped at €600p/w. This is paid to you tax free. The precise breakdown of what you might be entitled to depends on your start date, end date, level of pay, etc.
Often in situations such as this, you are offered an ‘ex gratia’ payment over and above the statutory minimum in order to facilitate your redundancy. Such payment would usually be dependent on you signing a waiver confirming that you are satisfied with the terms of the redundancy.
You are also entitled to six weeks’ notice, which can be paid in lieu if you are not expected to work out your notice. You would also be entitled to be paid for any untaken leave time. Any payment over and above your minimum redundancy would be taxed at the usual rates.
If you are not satisfied with how matters are progressing, do consult your solicitor.
