Redundancy is never easy—for employees or employers. But when not handled properly, it can lead to claims of unfair dismissal, reputational damage, and costly compensation.
That’s exactly what happened in a recent case before the Workplace Relations Commission (WRC), where an Executive Chef at Avoca Handweavers Limited successfully challenged his redundancy as unfair. Let’s break it down.
👨🍳 What Happened?
The employee, Mr. Mark McGillycuddy, had been working as Executive Chef for Avoca since 2010. In September 2020—at the height of the COVID-19 crisis—he was told that his job was “at risk” due to financial difficulties caused by the pandemic.
Over the following months, he attended several consultation meetings with his employer. He was told that business had declined, but the company never showed him any financial documents to prove this. A job opportunity in China was mentioned but quickly dropped, and no serious alternatives to redundancy were explored.
In early November 2020, he was made redundant. Feeling the process was deeply unfair, he appealed the decision internally—but was unsuccessful. He then brought his case to the WRC.
⚖️ What Was the Dispute?
Mr. McGillycuddy claimed:
- The consultation process was rushed and shallow.
- No financial evidence was given to justify his redundancy.
- There were other jobs available in the company he was never told about.
- His long service and willingness to consider other roles (even stepping down) were ignored.
He called the whole process a “sham” and said the redundancy was not genuine. He sought compensation for the income he lost after being let go—roughly seven months’ worth, totalling €57,166.
The employer disagreed. Avoca Handweavers said:
- The redundancy was genuine due to the COVID-19 crisis.
- Four consultation meetings were held.
- Redeployment options were discussed but found unsuitable.
- An internal appeal was carried out, and proper procedures were followed.
🧑⚖️ What Did the WRC Decide?
The WRC sided with the employee.
Here’s why:
- Lack of Genuine Consultation: The employer didn’t give enough detail about why the Executive Chef role, specifically, was affected.
- Missed Opportunities for Redeployment: The company failed to inform Mr. McGillycuddy about two other chef-related roles that were being advertised at the time.
- No Financial Proof Provided: Despite citing financial pressure, the employer gave no documentation to back it up—even though they were receiving state COVID support.
- Failure to Show Impersonality: Redundancies should not target individuals without clear and fair reasons. In this case, the decision felt personal and unjustified.
As a result, the dismissal was deemed unfair under the Unfair Dismissals Act.
👉 Mr. McGillycuddy was awarded €57,166 in compensation.
📌 Key Takeaways for Employers
Redundancy may be a legitimate business option—but the process must be handled with care, especially when jobs are on the line. Here’s what you need to keep in mind:
✅ 1. Communicate Clearly and Transparently
- Provide written notices early.
- Share financial or strategic data if redundancy is based on business decline.
- Keep minutes of meetings and correspondence.
✅ 2. Hold Meaningful Consultations
- Allow time for proper back-and-forth discussion.
- Address employee suggestions seriously (e.g., stepping into another role or reducing hours).
- Document all discussions and outcomes.
✅ 3. Explore All Other Options First
- Look for other roles within the company, even temporary or part-time ones.
- Inform the employee about any available positions—even if you think they might not be suitable.
- If the employee is willing to step down or move sideways, consider it properly.
✅ 4. Be Fair and Objective in Selection
- Use clear, consistent criteria for selecting people for redundancy.
- Keep written records of how decisions were made.
🧠 Final Thought
This case is a powerful reminder that even in tough economic times—like during a global pandemic—employers must follow fair procedures when considering redundancy. A rushed or poorly handled process, no matter how well-intentioned, can lead to serious consequences.
If you’re unsure whether your redundancy process is legally sound, it’s worth getting advice before taking action. At Employment Matters, we’re here to guide you through the complexities and help ensure your business stays compliant—while treating people fairly.
📩 Need help reviewing your redundancy process or facing a WRC claim? Contact our team today.
