A redundancy is when an employer terminates someone’s
employment because the position is no longer required. An
employer must have a genuine work-related reason for a
The definition of redundancy is important
because redundancy has a special status
within the law.
3. Redundancy can occur where :
employer ceases to carry on business or ceases to carry on business in the place
where employees have been employed.
employer's requirements for employees in specific category has ceased or
employer has decided to let employees work be done in a different manner in
future and they are not sufficiently qualified or trained to do the work in the
When a number of employees are being made redundant within a 30-day period
this is known as a collective redundancy.
Sometimes there is a voluntary redundancy situation. This is when an employer
needs to reduce the workforce and asks for some employees to volunteer for
4. impact of redundancy
The way an employer deals with redundancy also has powerful implications
for not only employees who are losing their jobs, but those who have to
break the bad news to them, as well as those who keep their jobs.
Redundancy has an impact on the whole organization.
5. What is redundancy pay
A sum of money given by an employer to an employee who has been made
redundant: usually calculated on the basis of the employee's rate of pay and
length of service
There are two sorts of redundancy pay:
•statutory redundancy pay
•contractual statutory pay
Who doesn't get redundancy pay?
• employees employed for: a identified task or project or for a particular season.
• employees terminated because of serious misconduct.
6. Challenges by employees to a redundancy
The employee can bring a personal grievance against you to the
Employment Relations Authority if:
employer did not have genuine commercial reasons for the redundancy
the process was unfair, or
employer did not comply with the employment contract.
7. Dismissals and redundancies
Redundancy happens when employee job disappears. It’s not the same as being
dismissed from your job for other reasons.
The most common reasons for employers making people redundant are because
they need to cut costs, close down or relocate, or because the work you do is no
Unfair dismissal occurs when employer has not followed a fair redundancy
process. Employers should always speak directly about why you have been
selected . If this hasn’t happened, employees may have been unfairly