Define Redundancies: Meaning & Rights in Ireland

What is the Legal Meaning of Redundancy?

In Irish employment law (Redundancy Payments Acts 1967–2014), the redundancy meaning is specific: it occurs when your job ceases to exist. It is impersonal. It means the role is no longer needed, not that the person is unwanted.

A genuine redundancy typically happens when:

• The business is closing down entirely.
• The business is moving to a new location that is too far for you to travel.
• The employer has decided to carry on the business with fewer staff.
• The nature of the work has changed, and your specific skills are no longer required.

Voluntary Redundancy Explained

Voluntary redundancy occurs when an employer asks members of staff if they would like to terminate their employment in exchange for a redundancy package. This package is often more generous than the statutory minimum to incentivize employees to leave. While you volunteer for it, it is still legally considered a redundancy.

Your Right to Redundancy Payment

If you have worked for your employer for at least 2 years (104 weeks), you are entitled to a Statutory Redundancy Payment. This is a lump sum payment that is completely tax-free.

The statutory amount is calculated as:

• 2 weeks' pay for every year of service (capped at €600 per week).
• Plus one bonus week's pay.

The Fair Redundancy Process

Even if a redundancy situation is genuine, the employer must follow a fair process. This includes:

• Consultation: Employers should consult with employees (or unions) as early as possible.
• Selection: The method for selecting who is made redundant must be fair (e.g., "Last In, First Out" or a skills matrix).
• Notice: You are entitled to a minimum notice period ranging from 2 to 8 weeks, depending on your length of service.