Legal Framework for Termination of Employment in Ireland
Legal Framework for Termination of Employment in Ireland
Termination of employment in Ireland requires adherence to specific regulations, as outlined in the Terms of Employment (Information) Act 1994-2014 and the Minimum Notice and Terms of Employment Acts 1973-2005. Both employers and employees have obligations regarding notice periods when ending employment.
Employees must provide notice to their employers when resigning. The duration of this notice period is usually detailed in the employment contract or collective agreements. If not specified, a "reasonable notice" period is assumed, generally calculated as one week for each year of service, up to a maximum of four weeks.
For employers, the Minimum Notice and Terms of Employment Acts dictate the notice period required when terminating an employee. The length of this period depends on the employee's tenure with the company. For instance, no notice is required for employees with less than 13 weeks of service, while a maximum of 10 weeks' notice is required for those with over 20 years of service. Employers may dismiss employees without notice in cases of gross misconduct or significant breaches of contract. It's crucial for both parties to review employment contracts, collective agreements, and policies to fully understand their rights and obligations regarding termination notices.
Case Study: Foreman vs. Construction Company
A case involving a foreman employed by a construction company highlighted issues related to termination notice and payment for accrued annual leave. The foreman claimed that upon being laid off and later made redundant, he did not receive the proper notice or compensation for unused annual leave. The employer did not participate in the hearing or provide evidence to counter the claims.
Under the Minimum Notice and Terms of Employment Acts, the foreman, having been employed for over seven years, was entitled to four weeks' notice. The adjudication found that the company failed to provide this notice and was thus liable to pay €3,432 as compensation.
Additionally, the foreman sought compensation for accrued annual leave from January 1, 2020, until his termination. Considering the Organisation of Working Time Act 1997, and given that the complaint was filed on May 1, 2020, the adjudicator assessed claims from November 2, 2019. It was determined that the foreman had not been paid for accrued leave, resulting in an additional compensation of €343.20.
The adjudication officer concluded that the company had breached employment law and ordered a total compensation payment of €3,775.20 to the complainant.