Redundancy Law In Practice
Redundancy is a lawful reason to end someone’s employment, but only if it’s genuine, and only if the process is fair. Many employers get this wrong.
If you’ve been made redundant and something doesn’t feel right, you may have grounds for an unfair dismissal claim. Here’s what Irish employment law actually requires.
What Is a Genuine Redundancy?
Under the Redundancy Payments Acts 1967–2007, a valid redundancy arises when a dismissal occurs “wholly or mainly” from one of the following situations:
The business is closing down — your employer has ceased or intends to cease carrying on the business, either entirely or at the location where you were employed.
The work has reduced or disappeared, the business no longer needs an employee to carry out work of the kind you were doing, in the place where you were employed.
Fewer employees are needed, your employer has decided to carry on the business with fewer staff, whether by redistributing your work among other employees or otherwise.
The work is being done differently, your employer has decided the work should be done in a different manner, and you are not sufficiently qualified or trained for the new approach.
The role now requires additional skills, your employer has decided the work should be done by someone capable of performing other duties as well, for which you are not sufficiently qualified or trained.
If your situation doesn’t fall within one of these categories, the redundancy may not be genuine — and that changes everything.
A Genuine Situation Is Not Enough – The Process Must Be Fair
This is where many employers fall down. Even where a real redundancy situation exists, the process used to select and dismiss an employee must meet certain standards. If it doesn’t, the dismissal can be found to be unfair. In Tracey Ring v Student Facilities & Services (UCC), the Adjudication Officer set out what a lawful redundancy process requires: Formal notice that your role is at risk. You must be told, clearly and in writing, that your position is being considered for redundancy. No employee should learn they’ve been made redundant without prior warning. Genuine consultation. Your employer must engage in a real consultation process with you, not a box-ticking exercise. This means discussing the situation, listening to your input, and genuinely considering alternatives. Fair selection criteria. Where more than one employee could be affected, employers typically use a selection matrix with a points system to determine who is made redundant. Redundancy is meant to be impersonal, it is the role being eliminated, not the person. Consideration of alternative roles. Your employer must genuinely consider whether suitable alternative employment exists within the organisation, including any suggestions you put forward. A right of appeal. You must be given the opportunity to appeal the decision. The Adjudication Officer in that case was blunt: an employer does not have a free hand to act as it pleases, regardless of the circumstances. The law applies even in exceptional situations — including, as in that case, during a global pandemic.
When Redundancy Becomes Unfair Dismissal
Redundancy is a valid defence to an unfair dismissal claim under the Unfair Dismissals Act 1977 — but only in limited circumstances. The defence will fail where: You were unfairly selected for redundancy, for example, where the selection process was arbitrary, discriminatory, or inconsistent with your contract of employment or with how redundancies were previously handled in the company, unless there was a special reason justifying a departure from standard practice. The redundancy was not genuine, where the situation does not actually meet the legal definition of redundancy, or where redundancy is being used as a pretext to dismiss a specific employee. In the case of A Service Technician v A Ventilation Company, the WRC found the dismissal to be unfair because the employee was given notice of redundancy and let go days later, with no explanation of why he had been selected. The WRC described the procedures as unfair, and quite seriously so.
The Burden of Proof Is on Your Employer
This is an important point that many employees don’t realise. Where you allege that you were unfairly selected for redundancy, the burden of proving that the selection was fair, and that the dismissal was therefore fair, rests with your employer, not with you. If your employer cannot demonstrate a fair process, a genuine redundancy situation, and reasonable selection criteria, the dismissal is likely to be found unfair.
What to Do If You’ve Been Made Redundant
If you’ve been let go and any of the following apply, you should seek legal advice:
- You were given no warning that your role was at risk
- There was no consultation process, or it was clearly a formality
- You were not told why you were selected over other employees
- No alternative roles were discussed or offered
- You were not given a right of appeal
- You suspect the redundancy was used to target you personally
- You believe the real reason for your dismissal was unrelated to redundancy
Time limits apply. Under the Unfair Dismissals Act, you generally have six months from the date of dismissal to bring a claim to the Workplace Relations Commission — extendable to twelve months in exceptional circumstances.
Get Expert Advice on Your Redundancy
Redundancy law is technical, and employers frequently cut corners on process. If something doesn’t add up, you may have a strong case.
Barry Crushell is a qualified solicitor with expertise in employment law, practising from Arran Square, Dublin 7. Contact us today to discuss your situation.
01 611 1546
