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Redundancy

Redundancy

What to do in a Redundancy situation

Where an employee is dismissed on grounds of redundancy, the dismissal may still be unfair if there has not been adequate consultation or where the employee has been unfairly selected for redundancy.

Do you know your rights on Redundancy?

  • Is your job or role ceasing to exist?
  • Is there a downturn in your employer’s business?
  • Do you have two years’ service?
  • Are others being let go at the same time as you?
  • Have you been placed on lay-off?
  • Have you been asked to sign an RP50 form?
  • Have you been asked to sign a waiver or compromise agreement?

What is a redundancy?

Redundancy is a dismissal or termination of an employee because of the elimination of the particular role that they carry out and is capable of challenge if it is unfair.

The employee’s role must cease to exist. For example where an employer needs to reduce its total number of employees or to close down a department, division or the business completely.

In the case of a reduction of the number of employees, redundancies normally happen either because:

  • the work of particular employees is no longer required or
  • the work of particular employees can be spread amongst other employees without taking on additional employees

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Other examples include where the job changes and the requires particular skills and/or qualifications which the employee does not have, or the business moves to a new location.

If the reason for the redundancy does not fall within the above categories then it is deemed not to be a genuine redundancy and will amount to an unfair dismissal. This means that the employee, can take a claim under the Unfair Dismissals Act 1977 – 2007 (see “Unfair Selection for Redundancy”).

Employee entitlements on redundancy

For employees to be entitled to a redundancy lump sum they need to meet the following requirements:

  • employees must have at least two years continuous service (104 weeks)
  • employees must be in employment which is insurable under the social welfare acts
  • employees must be between the age of 16 and 66 years old
  • you must have been made redundant as a result of a genuine redundancy situation

Under this act an eligible employee is entitled to two weeks statutory redundancy payment for every two years of service, plus a bonus week. All statutory redundancy payments are tax-free.

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