An overview of redundancy

A large number of businesses are faced with re-structuring their organisations every year for various reasons. Some of those reasons could include that the need for the worker has diminished or ceased if a new process or system is introduced. Another reason could be that the workplace is closing down and the business will no longer exist Unfortunately, difficult decisions have to be made to maintain the survival of many organisations and these decisions will often include redundancy. When an employer realizes that they may need to make a role redundant, it is vital that they seek advice on the correct process, especially the consultation phase required under the Redundancy Payments Acts of 1967 – 2007 to eliminate risks to the business.

In selecting employees for redundancy, the company must apply selection criteria that are reasonable and applied in a fair manner. The company should consider all options including possible alternatives. If there is an alternative position available, it must be put to the employees. If they refuse a reasonable offer, then it may mean that they lose their entitlement to a redundancy payment. An employee may take up an alternative or trial for up to four weeks and make their decision within that time

Potential grounds for complaint

It is very important to note that redundancy is still a termination of employment and therefore a risk is attached to it Although a redundancy situation may exist, employees may have grounds for complaint if the manner of the selection for redundancy was deemed unfair or if a genuine redundancy situation does not exist. An employee can take a case under the Unfair Dismissals Act legislation which may award up to two years’ salary if the employee wins the case. Some recent Workplace Relations Commission decisions have excluded any statutory redundancy payments already made when calculating the award. The amount of the award can vary significantly from case to case depending on the circumstances and does not include costs associated with preparation of the submissions for the hearing on behalf of the company and legal costs for representation i.e., a HR consultant/solicitor etc.

Under the unfair dismissal legislation, selection for redundancy based on certain specific grounds is considered unfair. These include redundancy as the result of an employee’s trade union activity and any of the protected nine grounds outlined in

Caroline Reidy

Managing director

The HR Suite

If you are an organisation based in the Republic of Ireland and require further information or advice relating to HR, please do not hesitate to contact The HR Suite’s office on (066)7102887 or email info@thehrsuite.com the Employment Equality Acts.

To qualify for redundancy payments, employees must have:

● worked continuously for at least 104 weeks over the age of 16.

● The position they hold must cease to exist. It is important to remember that it is always the position not the person that is made redundant.

Employers should note contractual notice periods that an employee is entitled to which will impact on their termination date for the calculation of any statutory redundancy payments.

Collective redundancies

Collective redundancies arise where, during any period of 30 consecutive days, the number of employees being made redundant is: five employees where 21-49 are employed, 10 employees where 50-99 are employed, 10% of the employees where 100-299 are employed, 30 employees where 300 or more are employed. The redundancy legislation requires that the company must consult with the employees as soon as is reasonably practical but not later than 30 days in the case of collective redundancy. The following matters should be addressed in the employee consultancy phase:

● The reasons for the redundancy

● The number and descriptions of the employees affected.

● The number and descriptions of employees normally employed.

● The period in which the redundancies will happen

● The criteria for selection of employees for redundancy

● The method of calculating any redundancy payment e.g., just statutory or an additional ex gratia.

The employer is also obliged to inform the Minister for Enterprise,

Quick Questions With Mario Ilha

Trade & Employment in writing of the proposed redundancies at least 30 days before the occurrence of the first redundancy.

The use of Form RP6

An employee who has been given a “Notice of Proposed Dismissal for Redundancy” may choose to leave their job before the redundancy date that has been given to them, for instance to accept an offer of alternative employment If they don’t use“Form RP6 - Leaving Before a Redundancy Ends” to notify their employer in writing, they risk the danger of losing any entitlement to redundancy compensation if they decide to leave. A request of this nature may be granted or denied at the employer’s discretion. It should be noted that a person’s eligibility for a redundancy pay-out may be impacted if they leave without the employer’s consent within the notice period.

If an employee has been laid off or working short-time for four consecutive weeks, or for six weeks out of the previous 13 weeks, they may notify their employer on “Form RP9 - Lay Off and ShortTerm Processes” of their decision to request a redundancy pay-out. Certain restrictions relating to layoffs and short-time employment were postponed by the Emergency Measures in the Public Interest (Covid-19) Act 2020. However, these postponements have since been lifted. An employer has the opportunity to either accept this or to give‘counter notice’. Counter notice must confirm that there will be full-time work available again within the next four weeks which must last for a further 13 weeks without lay off or reverting to short time. ■

Mario Ilha

1. Best series you recently watched on a streaming platform? Narcos.

2. Best place for coffee?

Coffee Works in Lucan Village.

3. Top movie recommendation? The Godfather Trilogy.

trade marketing manager, HBAS at Richmond Marketing

4. Top spot for a walk? Howth Cliffs.

5. Top book recommendation?

‘Eating the Big Fish’, by Adam Morgan.

6. Favourite influencer/content creator if you have one?

Simon Sinek.

7. Best ad on telly?

Guinness always nails them.

8. Worst ad on telly?

None; I always try to read into them, even if they are not up to scratch.

9. Your favourite dish to make at home? Brazilian Feijoada.

10. First thing you would do if you were Taoiseach?

Better access to the health system for all.

11. Greatest achievement to date? My family.

12. Best website?

Alison Empower Yourself (alison.com).

13. Do you prefer working from home or in the office/on-site?

I enjoy the hybrid system.

14. Best piece of advice you ever received? Don’t sweat the small stuff

15. Biggest fear?

That I won’t see my children grow up.

16. City or beach break? 100% beach.

17. Top restaurant recommendation? Bovinity Steakhouse.

18. Who is the last artist/group you saw live? Ludovico Einaudi (pianist).

19. Best customer service you ever received?

KLM: my mom was flying on a long overnight flight and got extremely unwell (due to a treatment side-effect). The crew couldn’t have been more helpful and supportive.

20. What’s the last compliment you received?

I am trusted by my peers and leaders. ■