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When: Feb 20, 12
Who: Staff

Redundancy:-

A redundancy arises where an employer wants to reduce its total number of employees or wants to close down a business completely. In the case of a reduction of the number of employees redundancies normally happen either because:
a) The work of particular employees is no longer required;
b) The work of particular employees can be spread around other employees without taking on additional employees;
c) Where the job changes and the new job requires particular skill and or qualifications which the employee does not have; or;
d) Where the business moves to a new location.

It is important to note that if the reason for the redundancy does not fall within the above categories or within the statutory definition of redundancy then it is deemed not to be a redundancy and will amount to a dismissal. Therefore an employee may have an unfair dismissals claim arising from the redundancy. A claim for unfair dismissal must be taken within 6 months from the date of the dismissal before the Employment Appeals Tribunal.

The selection criteria for making a particular employee redundant must be fair and objective. It is the obligation of the employer to satisfy the Employment Appeals Tribunal that the redundancy was reasonable and the employer must consider the alternatives to redundancy including seeking the input of the employee, considering proposals put forward by employees and considering redeployment within the organisation. It is for the employer to explain why the redundancy is still necessary.

If a genuine redundancy exists then there are requirements as to the minimum notice and payments which employees are entitled.

We have acted for clients in numerous redundancy situations and we have witnessed at first hand the stress and worry that many clients experience when faced with the realities of redundancy whether that redundancy was expected or otherwise.

If you have any queries in relation to redundancy or unfair dismissal please contact either Kieran McCarthy in our Employment Law Department on 021 4275220 or You should contact us at info@kmcc.ie for expert advice and guidance in this area.

 

Severance Agreements:-

Any payment made to an employee who is being made redundant which is in excess of their statutory entitlement is ex gratia (in other words there is no legal obligation to make this payment unless there is some form of agreement to do so). Employees may be entitled to similar ex gratia payments as were made to previous redundant employees as a result of custom and practice in the organisation.

It is important to note that where an employer is paying an ex gratia payment as part of a severance agreement the employee will often be asked to sign a waiver and release form in full and final settlement of any claims that the employee may have against the employer. This can have consequences for the employee into the future and it is therefore advisable to seek legal advice from an experienced employment law solicitor before signing any severance documentation.

If you have any queries in relation to severance agreements please contact either Kieran McCarthy in our Employment Law Department on 021 4275220 or You should contact us at info@kmcc.ie for expert advice and guidance in this area.

About Us & Contact

Kieran McCarthy & Co. Solicitors
Floor 3B, 6 Lapps Quay, Cork.
t: 021 427 5220 | f: 021 427 5250

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