Q: We currently going through a redundancy process. One of the positions that is affected is someone who is currently off on Parental Leave.
Our employee is taking 26 weeks Primary carer leave and 26 weeks extended leave. They started their Parental Leave on 7th November 2022.
They have been contacted about the possible redundancy situation and have now been notified on 15 May that their position has been made redundant and given their notice period.
Normally when a person does not come back from Parental Leave their termination date would be the first day of their Parental Leave and their annual leave termination payment would be as at that date. What termination date would I use in a redundancy situation? Would it be the same? I would at that time pay out their notice period and redundancy payment (if provided for in their employment agreement).
Would this have any effect on their IRD Parental Leave payments if they were still receiving them?
A: In this situation the termination date is when the job is no longer present (as it is not the employee not coming back to work – their choice but a business decision).
So, they get notice, if there is agreed redundancy compensation etc.
If they were approved for the paid parental leave redundancy does not effect this payment.