The topic of Redundancy can be considerably complex. Our HR Advisors explain how Employers should handle possible redundant roles in the correct manner, to avoid further issues for the business.

While we understand that it can be difficult to make these decisions, it is important to ensure that fair and due process is followed when deciding where reductions can be made, especially if exploring the option of redundancies. An employee’s employment can be terminated through redundancy but unless the redundancy is fair and legitimate, the WRC may find the employer guilty of unfair dismissal.

Consider all options available before making a job redundant

When selecting an employee’s role for redundancy, a Selection Matrix can be used to evaluate an employee’s competencies based off a set criteria of skills required to ensure business continuity. Personal reasons must be omitted from the decision-making process, as the consequences of it may prove to be crucial in further court appeals. An Employer should never use the redundancy option to dismiss an employee they do not like. Redundancy is not personal. Instead, it must result from, as Section 7(2) of the Redundancy Payments Acts 1967, provides; Reason not related to the employee concerned. Establishing the logic of any decision before making it is essential.

There is a strict redundancy selection process that has to be followed when making roles redundant. Remember, the role that is being made redundant rather than the employee. You cannot make an employee redundant and then hire a replacement for their position within the following 12 months. If redundancy is necessary, Employers must follow the correct process. Otherwise, it may result in Labour Court action.

As a result, you should seek the advice of The HR Company before beginning any process.

Selecting an Employee for Redundancy

  • There are two methods for selecting employees for redundancy –

  • First In, First Out – Employees with the shortest length of service are selected first for redundancy.

  • Selection Matrix – This selection method uses a set of criteria to establish which skill sets must be retained to keep the business open and afloat.

The selection process has a heavy bearing on whether the redundancy is fair and legitimate. Employers need to ensure that they invest time into ensuring that their selection process is fair and will stand up if challenged.

Proving that a redundancy was necessary is essential and if the correct process is not followed then this could be very costly for the Company and WRC/Labour Court action could follow.

Period of service

  • 2 to 5 years – 2 weeks’ notice

  • 5 to 10 years – 4 weeks’ notice

  • 10-15 years – 6 weeks’ notice

  • Over 15 years – 8 weeks’ notice

Employer must give a minimum of 2 weeks written notice of redundancy for their employees. This notice period depends on the time of service, see the following:

If you need further assistance for your business, we are here to support you. Arrange your consultation with one of our HR Consultants.

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