There must be legitimate reasons for redundancy. The dismissal must result wholly or mainly from one of the following reason:
- Business closure or relocation
Where the employer intends to cease to carry on business or where the employer intends to cease to carry on business in that location
- Business requirements have changed
Where the business requirements have changed or ceased for that particular employee and he/she does not have the expertise in any other area of business carried out by the employer. Employment Law Solicitors Dublin, Employment Lawyer Ireland, Employment Law Legal Advice Ireland
- Business reorganisation
Where the employer has decided to reduce the number of employee as a means of re-shuffling or re-organising the business.
TYPES OF REDUNDANCIES
The employer must give at least 2 weeks notice of termination of employment if the employee has served between 2- 5 years, 4 weeks if the employee has served between 5-10 years, 6 weeks if the employee has served 10-15 years and 8 weeks for anything greater than 15 weeks.
Notice should be given through Form RP50 (Form A)
Collective redundancies arise where, during any period of 30 consecutive days, the following occurs:
- 5 employees made redundant where there are 21-49 staff
- 10 employees made redundant where there are 50- 99
- 10% made redundant where there are 100-299
- 30 employees where there are 300 plus staff
The employer is obliged to enter into consultations with the employee’s representatives or the employees themselves “with a view to reaching an agreement” (Protection of Employment Act, 1977). These consultations must take place at least 30 days before the first dismissal.
Employers should provide the following information to the employee or their legal representatives:
- The reasons for the proposed redundancies
- Number of employees to be affected
- Criteria for redundancy selection
- Redundancy Payments and method of calculations
SELECTION FOR REDUNDANCY
A redundancy will be deemed to be unfair and leaves an employer
open to a claim under the Unfair Dismissals Act if the selection of the employee resulted wholly or mainly from:
- Membership/Trade Union activity
- Religious/Political opinions
- Membership of the travelling community
- Family Status
- Marital Status
- Legal proceedings taken against the employer by the employee
- Sexual orientation
2 weeks pay for each year of continuous employment plus 1 additional week. (Subject to a maximum earnings of €600 per week). The final year of service is calculated on a pro-rata basis.