REDUNDANCY
Redundancy can be a difficult and stressful experience for employees. It is important for employees to be aware of their rights and the obligations their employers have to them.
What is Redundancy?
Redundancy occurs when an employee’s employment ceases because their position is deemed to no longer be needed by their employer. It often occurs for reasons unrelated to the employee’s actions or performance.
Right to Redundancy Payment:
Employees who have been continuously employed for at least 2 years (104 weeks) are entitled to statutory redundancy pay. This payment is calculated based on:
- Length of Service: The employee must have at least two years of service with their employer to qualify for redundancy pay.
- Weekly Earnings: The Statutory Redundancy Payout is 2 week’s gross pay per year of service.
Notice of Redundancy
Employees are entitled to a notice period before they are made redundant. The minimum statutory notice period depends on the employee’s length of service:
- 13 weeks-2 years: 1 weeks’ notice
- 2–5 years: 2 weeks’ notice
- 5–10 years: 4 weeks’ notice
- 10-15 years: 6 weeks’ notice
- 15+ years: 8 weeks’ notice
If the employer does not provide proper notice, the employee is entitled to be paid in lieu of notice.
Redundancy Consultation
Employers are legally required to consult employees when they are at risk of redundancy. This includes:
- Informing the employee: Employers should explain the reasons for redundancy and the selection process.
- Exploring Alternatives: The employer should explore whether there are other ways to avoid redundancy, such as redeployment or changes to working hours.
- Consultation Period: There is no set duration for consultation in Irish law, but it should be meaningful and allow employees to discuss alternatives to redundancy.
- Collective Redundancy: If 20 or more employees are being made redundant by an employer at once, the employer is required to notify the Department of Enterprise, Trade and Employment at least 30 days before the redundancies take effect. In such cases, additional consultation requirements apply, such as with trade unions or employee representatives.
Fair Selection Process
Redundancy should not be discriminatory i.e based on age, gender, race, disability, or other protected characteristics under Irish law. Employers are required to apply fair and objective criteria when selecting employees for redundancy. This may include skills, experience or attendance.
Redundancy Protection also extends to employees who are on maternity leave, parental leave or any other statutory leave.
Right to obtain Legal Advice
Employees have the right to obtain independent legal advice prior to signing any agreement pertaining to a proposed redundancy. In many cases, the employer will insist on this as without same, an agreement signed could be deemed valid.
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