- Friday 04 April 2025
Redundancy is a deeply personal event for the people affected.
Understanding your legal rights, knowing what a fair redundancy process looks like, and preparing your next steps can make all the difference in how you move forward.
In this article, we explain the key points you should know about redundancy in Ireland, based on insights from Caoimhe Heery, Employment Law Specialist at Flynn O’Driscoll, along with guidance from our team at Curran Futures.
Prefer to watch?
Check out our expert video conversation on Employment Law & Redundancy Explained with Caoimhe Heery: Watch the full interview HERE
Understanding Redundancy in Ireland
In Ireland, employers must demonstrate that the redundancy is real (due to business needs like restructuring, role elimination, or downsizing) and that they have followed a fair and transparent process.
Just because a company is restructuring doesn’t mean they can select employees arbitrarily or unfairly. Selection criteria must be objective and the process must involve proper consultation with those affected.
Your Rights if You’re Facing Redundancy
If you have been with your employer for more than a year, you are protected under the Unfair Dismissals Acts.
This means you have a right to:
- A genuine redundancy (not a disguised dismissal)
- A fair selection process
- Consultation about alternatives to redundancy
- Appeal the decision if you believe it was unfair
Employees are entitled to statutory redundancy pay, calculated as:
- Two weeks’ pay for every year of continuous service, plus
- One additional bonus week,
subject to maximum weekly limits set by the government.
In some cases, companies may offer enhanced "severance" packages on top of the statutory entitlement.
It's important to note: redundancy cannot be used to dismiss someone unfairly, such as for poor performance, maternity leave, or raising complaints.
The process must always be about the role — not the person.
The Consultation Process: More Than a Formality
A genuine redundancy involves a real consultation phase, not just informing employees of a decision already made.
During consultation, employers should:
- Share the business rationale for redundancies
- Explore ways to mitigate job losses (like redeployment)
- Listen to employee feedback and suggestions
- Consider alternatives seriously
Proper consultation is a key part of a fair redundancy process.
Collective Redundancies: Special Rules Apply
If a larger number of employees are impacted, typically more than 10 people depending on company size, it becomes a collective redundancy.
Employers must notify the Minister for Enterprise, Trade and Employment at least 30 days before any dismissals.
They must consult with employee representatives and provide detailed information about the reasons for redundancy and potential alternatives.
Collective redundancy adds another layer of protection for employees and ensures greater transparency.
Multinationals and Redundancy in Ireland: A Different Legal Landscape
Caoimhe notes that multinational companies sometimes misunderstand Irish requirements — especially if their head office is in the U.S., where "at-will employment" is common.
Announcing layoffs in the U.S. does not mean the same process applies automatically in Ireland.
In Ireland, even if a global restructuring is announced, Irish law must be respected and failure to do so can lead to public relations damage, costly WRC claims, and reputational harm.
Voluntary Redundancy: An Option With Caution
Sometimes companies offer voluntary redundancy schemes, giving employees the chance to put their hand up for an exit package.
While this can seem attractive, it’s important to ensure that even voluntary redundancies arise from a genuine business need.
Revenue Commissioners may review voluntary payments to ensure they meet tax-free redundancy criteria.
And remember — once you accept a voluntary package, it’s difficult to challenge it later. Always seek advice before agreeing.
Financial Planning After Redundancy: Why It Matters
Beyond the legal process, redundancy is also a financial turning point.
Many employees receive lump sums, statutory payments, severance offers, or ex-gratia bonuses - that require smart decision-making.
Without clear planning, it's easy to underestimate how long a severance package will last or to miss opportunities to protect pension entitlements.
It’s vital to:
- Review lump sums for tax efficiency
- Consider top-up pension contributions
- Manage cashflow over the coming months
- Protect essential benefits like health insurance
Good financial planning at this stage isn’t just about protecting wealth, it’s about creating peace of mind for whatever comes next.
If You’re Facing Redundancy, Here’s What You Should Do
- Seek advice early — from both legal and financial professionals.
- Ask questions about your role, your selection, and the process being followed.
- Request your documents in writing — consultation notes, business cases, selection criteria.
- Understand your options before signing any agreements.
- Plan for the future with a full financial plan
Conclusion: Redundancy is Hard But You Don't Have to Navigate It Alone
Facing redundancy can feel overwhelming — but with the right legal support and thoughtful financial planning, it can also be an opportunity for a fresh start.
At Curran Futures, we work closely with individuals to help them navigate the financial side of redundancy from reviewing severance offers to planning the next chapter.
If you’re facing redundancy, we’re here to help you protect what you’ve built and prepare for what’s next.
Disclaimer
This article is provided for general information purposes only and does not constitute legal advice.
Curran Futures is a financial planning firm and does not provide legal services. We recommend that individuals seek independent legal advice regarding their rights under employment law.
