Redundancy

A redundancy situation arises if:

  • the employer has stopped (intends to stop) carrying on the business in which the employee is employed
  • the employer has stopped or intends to stop carrying on the business in the place where the employee is employed
  • the employer’s need for employees to carry out work of a particular kind has reduced or stopped or is expected to do so.

Employers who fail to follow proper procedure when dismissing employees for redundancy expose themselves to the risk of successful unfair dismissal claims.

Employers are required to take the following steps when considering dismissing on the grounds of redundancy:

  • Consultation
  • Collective redundancies
  • Selection
  • Application of selection criteria
  • Redundancy dismissals
  • Redundancy Payments