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Redundancy Policies and the challenges under the Unfair Dismissals Acts

Redundancy situations are a regular occurrence in business. They can arise from a number of situations, but the most common reasons for a redundancy are reductions in a company’s workforce and/or changes to the way work is being done.

Redundancy

Any employees that have been terminated by reason of redundancy, and that have accrued 104 weeks service, will be entitled to payment under the Redundancy Payments Act 1967-2014.   

Employers should be conscious that it is open to employees that have been made redundant to challenge the redundancy before the Workplace Relations Commission. These challenges are brought under the Unfair Dismissals Acts and can result in an award in favour of the employee if it is found that no genuine redundancy existed, that the employees selection for redundancy was unfair, or that fair procedures had not been followed throughout the process.

 

Case Study

We recently advised a retailer carrying out a redundancy process, which was necessitated by decreases in the monthly turnover. In an effort to maintain the business’s commercial viability, a redundancy process was carried out and one of five employees was made redundant. The employee brought a claim before the Workplace Relations Commission, challenging their selection for redundancy and claiming unfair dismissal. The employer successfully defended the claim on the basis of there being a genuine redundancy situation, having given due consideration to all reasonable alternatives, and having consulted with the employee throughout the process. 

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