Making An Employee Redundant In Ireland: Practical Guide

Redundancy can be necessary to keep a business viable, but it must be handled fairly and by the book. Decisions should be based on genuine business needs, not on personalities, and you must be able to show clear logic for every step you take.

How do you make an employee redundant fairly in Ireland?

1) Check if redundancy is really needed

First decide whether the downturn is short-term or longer-term. If it’s likely to be short, consider reduced working hours or a temporary lay-off before you move to redundancy. Exhaust other options first.

2) Identify roles at risk, not people

It is the position that becomes redundant, not the individual. Your decision should be tied to business requirements rather than to any view about a particular employee.

3) Use objective, business-led selection

Follow a strict, fair selection process. A clear Selection Matrix helps take personalities out of the decision and shows that criteria are relevant to the business.

4) Document your rationale and steps

If challenged, the onus is on the employer to prove the choices were correct. Commissioners will scrutinise the detail, so record your reasoning and decisions carefully.

If someone is made redundant, can they be replaced?

No. You cannot make an employee redundant and then hire a replacement to carry out the same tasks “the next day”. Doing so undermines the claim that the role itself was redundant.

Redundancy advice for employers: step-by-step

• Assess the business case across the company, not just one person or team.
• Consider short-time or lay-off as interim measures where appropriate.
• Define objective criteria (e.g., skills needed, performance measures tied to business need) in a Selection Matrix.
• Keep records so you can show why decisions were made and how criteria were applied. The employer carries the burden of proof.

Redundancy advice for employees: what to expect

• Redundancy should target a role, not a person. Ask for the business rationale and the selection criteria used.
• If processes around short-time or lay-off aren’t followed properly, disputes can arise, including constructive dismissal claims.

What risks apply if the redundancy process is wrong?

If the correct process is not followed, former employees may bring claims for unfair dismissal or unfair selection for redundancy. Employers face close scrutiny and potential high costs if decisions cannot be justified.

Common pitfalls to avoid when making an employee redundant

• Targeting an individual you dislike rather than a role the business no longer needs.
• Skipping alternatives such as reduced hours or lay-off where a short-term dip is expected.
• Re-filling the same tasks immediately after a redundancy decision.
• Failing to keep detailed records to show fair, objective decision-making.

Quick checklist for HR teams

1. Confirm business case and explore alternatives.
2. Define the role(s) at risk and objective criteria.
3. Apply a Selection Matrix and document decisions.
4. Retain records to meet the employer’s burden of proof.