This article is for Irish HR managers, small‑business owners, and employment‑law practitioners who need to run a redundancy process that complies with Irish legislation. It is especially relevant if you are preparing to select, consult, and terminate employees while minimizing legal risk.
After reading, you will understand the statutory definition of genuine redundancy, how to design objective selection criteria, conduct meaningful consultations, and handle notice periods and statutory paperwork. You will be equipped to implement a defensible process that reduces the chance of unfair‑dismissal claims and associated compensation.
Key Takeaways
A redundancy is only lawful when the role, not the individual, has genuinely ceased to exist and both impersonality and a genuine change in work are satisfied.
Employers must use objective, measurable selection criteria and document the rationale to avoid discrimination and unfair dismissal claims.
Meaningful individual consultation, including a risk letter and a meeting to discuss alternatives, is mandatory for every redundancy.
Statutory notice periods and redundancy pay are based on length of service, with redundancy pay capped at €600 per week and a maximum statutory lump sum of €31,200 per year.
Failing to follow the 30‑day collective consultation rule or other procedural steps can result in fines up to €250,000 and significant compensation awards.
Laura Ryan is a practising Barrister at the Bar of Ireland. She graduated from the Honourable Society of King’s Inns in 2024, having previously qualified and practised as a Chartered Accountant in a big four accounting firm.
A genuine redundancy exists only when the role, not the individual, has wholly or mainly ceased due to statutory grounds such as business closure, workplace closure, reduced work, reorganisation, or automation, satisfying impersonality and a real change in work required.
How should employers select employees for redundancy?
Employers must use objective, measurable criteria applied consistently across the selection pool, such as skills, qualifications, documented performance, disciplinary record, and attendance (excluding protected leave). The criteria must be recorded in writing and cannot include protected characteristics like age, gender, or disability, to avoid unfair dismissal claims.
What are the consultation requirements for redundancies?
Employers must provide a written at‑risk notice and hold at least one meeting with each affected employee to discuss the rationale, alternatives, and redeployment options, allowing the employee a right to be accompanied. For collective redundancies, a 30‑day consultation with representatives and ministerial notification is mandatory.
How is statutory notice and redundancy pay calculated?
Statutory notice depends on service length, ranging from one week after 13 weeks up to eight weeks after more than 15 years. Statutory redundancy pay equals two weeks’ gross pay per year of reckonable service plus one bonus week, with weekly pay capped at €600, making the maximum annual statutory lump sum €31,200.
