Selection for Redundancy and Consultation regarding Alternative Position

In Irish employment law, a genuine redundancy requires a fair selection process and a meaningful consultation regarding alternatives, including any other available positions. Failure to follow fair procedures can lead to a claim for unfair dismissal, even if a genuine redundancy situation exists. 

Selection for Redundancy

The fundamental principle of redundancy is that the role is redundant, not the person. Selection for redundancy must be an impersonal, objective, and transparent process. 

• Selection Pool: The first step is identifying a “pool” of employees doing the same or similar, interchangeable roles from which redundancies will be made.
• Selection Criteria: Employers must use fair and objective criteria, which should be documented and consistently applied. Common examples include:
  • Length of service (e.g., “last in, first out” is a common, though not legally mandatory, method).
  • Relevant skills, qualifications, and experience.
  • Performance standards (based on consistent, documented appraisals).

Discrimination: Selection cannot be based on discriminatory grounds such as age, gender, race, religion, disability, or trade union activity. 

Consultation Regarding Alternative Positions

Consultation is a legal obligation and must be a genuine, two-way dialogue, not just informing an employee of a decision already made. 

• Purpose: The aim of consultation is to explore ways of avoiding or reducing the redundancies and mitigating their impact.
• Exploring Alternatives: The employer must genuinely consider all alternatives to redundancy, including:
  • Offering available alternative roles within the business.
  • Retraining for new roles.
  • Considering suggestions from the employee, such as reduced hours or temporary lay-offs.
• Alternative Work Offer: An offer of alternative employment should be in writing and start within four weeks of the old job ending.
• Suitability and Refusal: The alternative role should be a “suitable” offer (similar status, pay, and location). An employee can take a four-week trial period in the new role. If an employer makes a reasonable offer of a suitable alternative role that the employee refuses without good reason, the employee may lose their entitlement to a statutory redundancy payment. Good reasons for refusal might include significantly lower pay, a much longer commute, or a reduction in status.
• Timing: Consultation should happen before the final decision is made.