1. Introduction
The case of A Deli Assistant v A Sandwich Shop (ADJ-00027111) is a useful illustration of the operation of the time extension provision under Section 24 of the Redundancy Payments Act 1967. The provision allows the WRC to extend the standard 52-week time limit for redundancy payment claims where reasonable cause is shown.
This article addresses the operation of Section 24, the test applied to extension applications, and the practical implications for both employers and employees.
2. Legislation and Case Law
Section 7(2) of the Redundancy Payments Act 1967 defines redundancy. The provision identifies five circumstances in which a dismissal is by reason of redundancy: where the employer has ceased or intends to cease to carry on the business; where the employer’s requirements for employees to carry out work of a particular kind have ceased or diminished or are expected to cease or diminish; where the employer has decided to carry on the business with fewer employees; where the employer has decided that the work shall henceforth be done in a different manner for which the employee is not sufficiently qualified or trained; or where the employer has decided that the work shall henceforth be done by a person who is also capable of doing other work for which the employee is not qualified or trained.
Section 24(1) of the 1967 Act provides that, notwithstanding any other provision of the Act, an employee shall not be entitled to a lump sum payment under the Act unless before the end of the period of 52 weeks beginning on the date of dismissal, he has made a claim for the payment, or the question of his right to the payment has been referred for decision in accordance with Section 39.
Section 24(2A) provides that the WRC may, where it is satisfied that the failure to make the claim or refer the question within the 52-week period was due to reasonable cause, extend the period for a further period of up to 52 weeks. The total period within which a claim may be brought is therefore up to 104 weeks from the date of dismissal.
The reasonable cause test is the same as that applied under Section 41(8) of the Workplace Relations Act 2015. The leading authority is Cementation Skanska v Carroll (DWT0338): the cause must both explain the delay and afford an excuse for it, and must meet an objective standard of reasonableness.
Common bases for extension include serious illness, reliance on incorrect advice from a representative, good faith engagement with the employer in respect of the redundancy, and circumstances arising from the employer’s own conduct.
3. Decision
The Adjudication Officer in ADJ-00027111 considered an extension application made by a Deli Assistant whose claim for a redundancy payment had been brought outside the 52-week period. The application required examination of the reasons for the delay and the proportionality of those reasons to the period.
Where the delay was attributable to good faith engagement with the employer about the redundancy and the proper payments, the Adjudication Officer was likely to find reasonable cause. Where the delay was attributable to mere inadvertence or ignorance, the application was less likely to succeed.
The Adjudication Officer’s decision is fact-specific. The general principles are well-established, but the application to particular facts requires careful assessment of the available evidence and the proportionality of the delay.
Practitioners should bear in mind that the WRC’s discretion is wide. The reasonable cause standard is not a high one, but it does require a genuine explanation grounded in objectively defensible circumstances.
4. Takeaway
For employees, the 52-week time limit is a hard deadline that should be observed. Where the limit is approaching and the claim is contested, the safer course is to lodge the claim within time and pursue any settlement negotiations separately.
Documentation of the reasons for any delay is important. Where the delay was attributable to good faith engagement with the employer, the relevant correspondence should be preserved. Where the delay was attributable to illness or to reliance on advice, supporting documentation should be obtained.
For employers, the time limit is a real defence. An employer who receives a late claim should plead the point at the earliest opportunity. The reasonable cause requirement is a real one, and Complainants who cannot establish it should not benefit from an extension.
Practitioners should also consider the interaction with parallel complaints. A late redundancy payment claim may, in some circumstances, be addressed through a parallel Payment of Wages Act complaint or a Section 39 redundancy dispute complaint. The available routes should be considered together.
5. Further information
This article was prepared for informational purposes only. For further advice, please email enquiries@crushell.ie or contact the offices of Crushell & Co Solicitors.
6. About Crushell & Co
Crushell & Co is a specialist law firm focused on protecting and advancing the rights of employees in Ireland. We offer a nationwide service, advising individuals on a wide range of legal and regulatory issues arising at work, including employment law, employment immigration and workplace accidents and injuries.
We help employees understand their position and options by translating complex legal issues into clear, practical advice. Our approach is tailored to each client, ensuring that our strategy is aligned with their personal and professional circumstances.
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