Frequently Asked Questions
In this section we aim to answer a number of important questions relating to key HR, Employment Law and Health and Safety Topics.
This month’s focus: Redundancy
In general, a redundancy arises where an Employee's role no longer exists and they are not replaced. The Redundancy Payments Acts 1967 to 2012 defines when this occurs and provides for a redundancy payments scheme.
In order for an Employee to be entitled to a redundancy lump sum under the Redundancy Payments Scheme they must:
The area of redundancy has seen significant growth in recent years, which brings about the need for Organisations to have an increased awareness relating to all aspects of redundancy, from communications to selection through to implementation.
What makes a redundancy genuine?
A genuine redundancy is taken to exist where one of the following arise:
What is voluntary redundancy?
A Voluntary redundancy situation arises when an Employer is considering redundancies and seeks to get volunteers for redundancy prior to making any compulsory redundancies. In such situations, the redundancy must still be genuine.
Are Temporary / Fixed Term / Fixed Purpose Employees entitled to redundancy?
Where a fixed term contract expires or where the specific purpose for which the contract was created ceases, without the contract being renewed, a redundancy situation can arise (provided that the other requirements under the Redundancy Payments Acts are met).
This month’s focus: Redundancy
In general, a redundancy arises where an Employee's role no longer exists and they are not replaced. The Redundancy Payments Acts 1967 to 2012 defines when this occurs and provides for a redundancy payments scheme.
In order for an Employee to be entitled to a redundancy lump sum under the Redundancy Payments Scheme they must:
- Have at least two years continuous service (104 weeks);
- Be in employment, which is fully insurable under the Social Welfare Acts;
- Be over the age of 16;
- Have been made redundant as a result of a genuine redundancy situation.
The area of redundancy has seen significant growth in recent years, which brings about the need for Organisations to have an increased awareness relating to all aspects of redundancy, from communications to selection through to implementation.
What makes a redundancy genuine?
A genuine redundancy is taken to exist where one of the following arise:
- The Employer ceases to carry on the business for which the Employee was employed, or ceases to carry on the business at the same place where the Employee was employed.
- The work for which the Employee was employed has ceased or the requirement to perform that work has reduced.
- The Employer has decided to carry on the business with fewer or no Employees. Work may be reallocated to other Employees.
- The work which the Employee performed is to be performed in a different way and the Employee is no longer qualified to undertake the work.
- The Employee’s work is to be undertaken by another person who is sufficiently qualified and capable to undertake other work for which the Employee is not sufficiently qualified or trained.
What is voluntary redundancy?
A Voluntary redundancy situation arises when an Employer is considering redundancies and seeks to get volunteers for redundancy prior to making any compulsory redundancies. In such situations, the redundancy must still be genuine.
Are Temporary / Fixed Term / Fixed Purpose Employees entitled to redundancy?
Where a fixed term contract expires or where the specific purpose for which the contract was created ceases, without the contract being renewed, a redundancy situation can arise (provided that the other requirements under the Redundancy Payments Acts are met).
