Statutory redundancy in Ireland is not automatic. Qualifying service, continuous employment, and non-standard arrangements all create traps that catch employers off guard, as a recent high-profile case demonstrates Read more
Statutory redundancy in Ireland sounds simple enough: two weeks’ pay per year of service, plus a bonus week, paid to any qualifying employee whose role is genuinely eliminated. But the word qualifying is doing a lot of heavy lifting in that sentence. A recent Irish Times report about a political adviser whose redundancy entitlement was disputed after a move to the European Parliament shows just how complicated qualifying service can become in non-standard employment arrangements.
The case involved an adviser whose Leinster House role was made redundant in 2024 when the politician they worked for was elected to a parliament outside Ireland. The adviser was told a statutory redundancy payment would only become available if the politician lost their seat. The details are unusual, but the underlying problem is one our team at Purpletree HR encounters regularly: employers and employees alike assuming redundancy entitlement is automatic, when in fact it depends on a set of qualifying conditions that are easier to fail than most people realise.
To qualify for a statutory redundancy payment under the Redundancy Payments Acts 1967-2014, an employee must have at least 104 weeks (two years) of continuous service, be aged 16 or over, and be in insurable employment under the Social Welfare Acts. The payment is calculated at two weeks’ gross pay per year of service, plus one bonus week, subject to a weekly earnings cap of €600. If any of those qualifying conditions are not met, the entitlement does not arise, and the employer who assumes otherwise may face either an unexpected bill or a WRC complaint.
Most employers understand that a redundancy payment exists. Fewer understand the specific conditions that must be satisfied before the obligation kicks in. The 104-week continuous service requirement is the one that causes the most problems, particularly in sectors where employment arrangements are anything but straightforward.
Consider the types of roles where continuous service is easily disrupted or disputed: fixed-term contracts that roll over with gaps between renewals, seasonal work in hospitality or retail, project-based engagements in construction, and politically appointed positions tied to an officeholder’s term. In each of these situations, whether 104 weeks of continuous service actually exists is a question that requires careful analysis of employment records, contract terms, and the specific circumstances of any breaks in service.
A situation we see frequently involves employers who have re-hired the same person multiple times on successive fixed-term contracts. Each contract might be only 10 or 11 months long, with a short gap in between. The employer assumes no redundancy entitlement arises because no single contract exceeds two years. But the WRC may take a different view if the gaps are short enough, or if the work was effectively continuous despite the contractual breaks. The outcome depends on the facts, and the employer who has not documented those facts properly is at a significant disadvantage.
The political adviser story is a sharp illustration of how non-standard employment arrangements create redundancy headaches. The role was tied to a specific politician. When that politician’s circumstances changed, the role was eliminated. But the question of whether the adviser had a continuous employment relationship, and with whom, turned into a dispute.
Irish employers outside of politics face similar challenges more often than they might expect. In our experience advising employers across Ireland, the following arrangements regularly cause confusion around statutory redundancy entitlement:
Each of these scenarios involves overlapping questions of employment status, continuous service, and contractual documentation. Getting any one of them wrong can mean either paying a redundancy lump sum you did not budget for, or failing to pay one you owed and ending up at the WRC.
The concept of continuous service under the Redundancy Payments Acts is not as intuitive as it sounds. Certain absences do not break continuity: periods of sick leave, annual leave, maternity leave, or lay-off, for example, generally preserve the service record. Other absences, such as a genuine resignation followed by a new start, typically do reset the clock.
The grey areas are where employers get into trouble. A two-week gap between fixed-term contracts might look like a clean break on paper, but the WRC will consider whether the employee was expected to return, whether the role continued to exist, and whether the employer’s intent was to avoid building up qualifying service. Employers who structure contracts to sidestep the 104-week threshold are taking a risk that a WRC adjudicator will see through the arrangement.
This is one of the areas where having specialist HR support makes the difference. Assessing whether a particular employment history constitutes continuous service requires a detailed review of contracts, payroll records, correspondence, and the practical reality of the working relationship. Our employment contracts service includes exactly this type of review, ensuring contracts reflect the actual arrangement and that employers understand their exposure before a redundancy situation arises.
Failing to pay a statutory redundancy entitlement is not a minor administrative oversight. An employee who believes they are owed a redundancy payment can refer a complaint to the Workplace Relations Commission. If the WRC finds in their favour, the employer will be ordered to pay the full statutory amount. In some cases, additional compensation may be awarded if the WRC considers that the employer acted unreasonably or in bad faith.
For a long-serving employee earning at or above the €600 weekly cap, the statutory redundancy payment alone can run into tens of thousands of euro. Add in the cost of legal representation, management time spent preparing for a WRC hearing, and the reputational risk of a published adjudication, and the total cost of getting qualifying service wrong becomes substantial.
On the other side of the coin, employers who pay redundancy when it is not owed, because they assumed the entitlement existed without checking, are spending money they did not need to spend. Both errors stem from the same root cause: not properly assessing qualifying service before the redundancy takes effect.
When we guide clients through a redundancy at Purpletree, the qualifying service assessment is one of the first steps. Before any conversations with affected employees, before any letters are drafted, we review the employment history in detail: contracts, payroll records, any gaps or breaks, and the nature of the working arrangement.
This is where the complexity sits. A redundancy that looks straightforward on the surface can involve questions about continuous service, PRSI insurability, transfer of undertakings, and whether fixed-term contract renewals have created an unintended permanent employment relationship. These are not questions most employers are equipped to answer confidently on their own, and a wrong answer carries real financial consequences.
Our redundancy and dismissals service covers the full process, from initial assessment of entitlements through to consultation, documentation, and WRC compliance. For employers who want to ensure their broader HR framework is sound before any redundancy arises, our HR audit identifies gaps in contracts, records, and policies that could create exposure down the line.
The goal is straightforward: employers should know exactly where they stand before a redundancy conversation begins, not after a WRC complaint arrives. If you are planning a redundancy or restructuring, or if you have employees on non-standard arrangements and are unsure about your exposure, get in touch with our team before the situation becomes urgent.
An employee must have at least 104 weeks (two years) of continuous service with the same employer to qualify for a statutory redundancy payment under the Redundancy Payments Acts 1967-2014. The service must be continuous, though certain types of absence (such as sick leave and statutory leave) generally do not break continuity.
Not necessarily. The WRC will examine the substance of the arrangement, including whether the employee was expected to return, whether the role continued to exist during the gap, and whether the break was genuine. Short gaps between successive contracts covering the same role are unlikely to be treated as a clean reset of service.
The employee can refer a complaint to the Workplace Relations Commission. If the WRC determines that a statutory redundancy entitlement exists and has not been paid, the employer will be directed to make the payment. Employers who are uncertain about their obligations should seek specialist HR advice before the redundancy takes effect.
To qualify, the employee must be aged 16 or over, have at least 104 weeks of continuous service, and be in employment that is insurable under the Social Welfare Acts. Certain categories of worker, including some public servants and close family members of the employer, may be excluded. The specifics depend on the individual circumstances, which is why a proper assessment before any redundancy is so important.
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.
Our team of HR specialists advises Irish employers on exactly these issues every day. Get in touch for a confidential conversation.
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