A political adviser told their redundancy payment depends on an MEP losing their seat raises a question every Irish employer should ask: can a statutory redundancy entitlement ever be deferred or made conditional? Purpletree HR unpacks the rules, the edge cases, and where employers most often get it wrong Read more
A political adviser whose position was made redundant in 2024 has been told their statutory redundancy payment is only available if the politician they worked for loses their seat. As reported by The Irish Times, the adviser’s role ceased when their employer moved to a different institution, yet access to the statutory payment appears to have been conditioned on a future event entirely outside the employee’s control. Whatever the specific arguments in that case, it raises questions that apply far beyond politics: when does a redundancy entitlement actually crystallise, what makes a redundancy genuine, and can an employer defer or condition payment of a statutory entitlement?
For Irish employers, redundancy entitlement looks straightforward until an unusual set of facts appears. The basic calculation is widely known, and there is an official redundancy calculator on MyWelfare.ie. The eligibility rules, however, contain nuances that regularly produce WRC claims. If you need a walkthrough of the process itself, our step-by-step guide to the redundancy process in Ireland covers the practical sequence.
Under the Redundancy Payments Acts 1967-2014, an eligible employee is entitled to two weeks’ gross pay per year of service, plus one bonus week, capped at €600 gross per week. The employee must have at least two years of continuous service. Statutory redundancy is payable when the employment ends by reason of genuine redundancy. It is not discretionary and cannot be withheld pending a future event.
The Redundancy Payments Acts define redundancy by reference to specific circumstances, not the employer’s stated reason. The qualifying grounds include:
Two things follow. First, the redundancy must relate to the role, not the individual. A redundancy used to remove a specific person whose performance is unsatisfactory is not genuine, and the WRC will look through the label. Second, if the same role continues to exist and is filled by someone else, the redundancy is unlikely to be considered genuine.
Once a genuine redundancy has occurred and eligibility conditions are met, the statutory entitlement crystallises at the date employment ends. An employer cannot defer payment pending a future event, make it conditional on the employee signing a waiver, or use it as a bargaining chip in settlement negotiations.
Failure to pay on time entitles the employee to pursue the debt through the WRC or civil courts. The most common version of this problem in the private sector involves employers facing cash flow pressure who delay payments. That delay does not suspend the legal obligation, and financial difficulty is not a defence.
Statutory redundancy requires two years of continuous service. Continuity is preserved through statutory maternity leave, paternity leave, adoptive leave, parental leave, and most periods of sick leave. A business transfer under TUPE regulations also preserves continuity, meaning employees carry their pre-transfer service for redundancy calculation purposes. Employers who acquire businesses and believe they inherit a clean sheet on service entitlements are frequently mistaken.
An employee who unreasonably refuses an offer of suitable alternative employment loses their redundancy entitlement. However, the word “suitable” carries significant weight. The WRC assesses suitability by reference to the nature of work, pay, location, hours, and overall terms compared to the redundant position.
A role on lower pay, materially different hours, or at a location that creates genuine practical difficulty will rarely satisfy the suitability test, regardless of what the employer considered reasonable. The assessment is objective, not subjective.
Where an employer offers alternative employment, the employee is entitled to a statutory trial period of four weeks. If the employee rejects the new role during this period, they are treated as having been dismissed on the original redundancy date and remain entitled to their statutory payment. Treating a trial-period rejection as a resignation is incorrect and opens the employer to a WRC claim.
Where an employer proposes a defined number of redundancies within a 30-day period, the Protection of Employment Act 1977 imposes collective redundancy obligations. The thresholds are:
Where thresholds are met, the employer must notify the Minister for Enterprise at least 30 days before any redundancy takes effect, consult with employee representatives, and provide specified information in writing. Failure to comply is a criminal offence. For employers in manufacturing or construction, project-end redundancies can trigger collective obligations faster than anticipated.
Redundancy during maternity leave is one of the highest-risk scenarios. An employee on maternity leave has an automatic right to return to their role or a suitable alternative on no less favourable terms. Making an employee redundant while on maternity leave is not automatically unlawful, but the bar is very high. The employer must demonstrate the redundancy is entirely genuine and that the leave status played no part in the selection.
Where a redundancy involves selecting from a pool, selection criteria must be objective, applied consistently, and related to business requirements. Selection based on attendance records that include protected absences (disability-related sick leave, maternity leave) can expose the employer to discrimination claims. Where the selection appears tailored to a particular individual, the WRC will examine whether it is genuinely a redundancy or a performance dismissal dressed up as restructuring.
The time to address redundancy risk is before the redundancy process begins, not after the employee has lodged a WRC claim. Structuring a genuine redundancy correctly requires documenting the business rationale, conducting fair consultation, assessing alternative roles, calculating the payment accurately, and issuing correct notice.
Our employment advice service manages redundancy processes end to end, from initial documentation through to issuing payments and RP50 forms. Our HR Essentials service builds the policies that prevent disputes from arising. For larger-scale restructuring, our strategic HR consulting service handles collective redundancy obligations.
If a redundancy situation is forming in your business, a conversation with our team at the earliest stage gives you the most options.
Two weeks’ gross pay per year of continuous service, plus one bonus week. Pay is capped at €600 per week. The Department of Social Protection provides a redundancy calculator that estimates the lump sum based on service dates and weekly pay.
Yes, provided employees meet the two-year service threshold. An insolvent employer may apply to the Department of Social Protection’s Redundancy Payments Scheme for the State to advance payments, but this does not eliminate the employer’s liability.
If the same role is filled shortly after, the WRC is likely to find the redundancy was not genuine. The employee can bring an unfair dismissal claim, and the employer faces exposure on both the redundancy payment and unfair dismissal award.
Yes, if they have at least two years of continuous service and the redundancy occurs during the contract term. Successive fixed-term contracts may accumulate continuous service, which is an area where employers managing project-based workforces sometimes underestimate their exposure. Purpletree’s employment advice team can review your arrangements. For official reference, see the WRC guidance on redundancy.
This article is for general informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. For advice on your specific situation, contact the Purpletree HR team directly.
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