CFO Awarded €60,000 for Retrospective Redundancy

In this Case, the Respondent argued that the Complainant’s dismissal arose from a genuine redundancy situation. However, the Organisation failed to communicate redundancy as the reason for dismissal at the time, did not provide the Employee with reasons for her dismissal when requested, and accepted during the hearing that the dismissal procedure was flawed. The Adjudicator found it telling that while the Respondent claimed that the reason for the dismissal was due to redundancy, it did not rely on this reason at the time of the Complainant’s dismissal.

Employers should remember that even where a genuine redundancy situation exists, the redundancy process itself must be conducted fairly and in accordance with the principles of natural justice. A failure to follow fair procedures can render an otherwise genuine redundancy dismissal unfair.

This decision and level of compensation serve as another recent reminder that redundancy is one of the most technical areas of employment law. Organisations should proceed with extreme caution, ensuring both the business rationale and the selection process can stand up to detailed legal scrutiny before confirming redundancy dismissals. Non-compliance can result in significant compensation awards, even where there is a legitimate business case for reducing headcount.

To learn more about partnering with Adare Trusted People Partners’ Leading HR & Employment Law Experts, please contact Neil McCormack nmccormack@adarehrm.ie today.