Eligibility for Redundancy Payments in Ireland

In Ireland, employees who face termination of their employment due to redundancy may be entitled to redundancy payments under the Redundancy Payments Acts 1967–2014. To be eligible for these payments, employees must meet certain criteria, including a minimum length of service (typically two years), the nature of their redundancy, and their employment status. The calculation of redundancy payments considers the employee's length of service, age, and earnings, within statutory limits. Employers are required to follow specific procedures, including consulting with affected employees and notifying relevant authorities as needed.

Employees who believe they are entitled to redundancy payments but have not received them can seek help from the Workplace Relations Commission (WRC) or take legal action through the Labour Court.

Case Study: Redundancy and Employment Changes

In a case involving a bus driver who worked at a car park managed by a transportation company, the complainant was temporarily laid off due to a decrease in passenger numbers caused by the Covid-19 pandemic. When the company ceased operations in April 2021, the complainant was offered a position with a sister company under different terms and conditions. He believed these changes rendered his original job redundant and refused the new job offer, subsequently filing complaints for redundancy pay as well as unpaid holiday and public holiday pay for the lay-off period.

The complainant argued that the new role involved significant changes, such as a different employer, job title, location, pay structure, and other employment terms, which he felt constituted redundancy of his original job.

The respondent contended that the offer represented continued employment with the same company but in a different role, and thus did not amount to redundancy. They asserted that the new position was suitable, with only minor changes to the terms and conditions.

Upon reviewing the evidence and applicable laws, it was determined that the new role was appropriate, involving only minor adjustments. The complainant’s refusal to accept the new position was deemed unreasonable, and he was not entitled to redundancy pay. However, the respondent recognised the complainant's entitlement to annual leave and public holiday pay during the lay-off period, totalling €442.89. As a result, the complaints related to the Organisation of Working Time Act were partially upheld, while the redundancy pay claim was dismissed.