Labour Court recommends five weeks' redundancy pay per service year at Damovo Ireland

The Labour Court recommended a redundancy package of five weeks' gross pay per year of service, inclusive of statutory entitlements and capped at 156 weeks' pay, for Damovo Ireland Ltd's restructuring. It did not recommend early retirement or a minimum payment. The recommendation followed the Court's interpretation of a 2001 company letter as a commitment to continue an arrangement of 5.5 weeks' pay per service year, exclusive of statutory entitlements. The Court balanced that commitment against the company's financial and commercial circumstances. The Services Industrial Professional Technical Union had sought a voluntary redundancy package and was willing to discuss early retirement with enhanced pension funding. The recommendation was signed on 7 April 2005; if accepted, discussions on company measures were to finish within eight weeks.