The genuine test
The WRC scrutinises whether the role actually ceased to exist. Rehiring into a similar role shortly after gives a complainant strong grounds.
A hard call, handled properly
A redundancy process that gets every step right
The redundancy process in Ireland is legally precise and significantly exposed to WRC challenge if any step is wrong. Whether you are making one role redundant or restructuring an entire team, PurpleTree manages every stage: confirming the role is genuinely redundant, calculating statutory entitlements correctly, meeting collective redundancy obligations, and defending your process if a claim follows.
Know where the real danger lies.
The Three Points of Legal Exposure
Most WRC claims arising from redundancy are not about the fact that a job was cut. They are about how it was done. The Workplace Relations Commission applies three tests that trips up employers who move too quickly or without proper process: whether the redundancy is genuine, whether the statutory entitlements were correctly calculated and paid, and whether collective redundancy obligations were followed. Getting any one of these wrong converts a legitimate business decision into an unfair dismissal claim or a statutory breach. PurpleTree makes sure all three are handled correctly from the outset.
Statutory calculations
Underpaying statutory redundancy triggers a claim under the Redundancy Payments Acts. The formula and cap are precise. Errors are not corrected informally.
Collective obligations
Five or more redundancies within 30 days triggers statutory notification and consultation requirements most SMEs are not aware of.
A clear run from notice to last day.
The Redundancy Process, Step by Step
Even straightforward redundancies are judged on process, so it helps to see the whole sequence before you start. A defensible redundancy in Ireland runs through the same stages whether you are letting one role go or restructuring a team.
You confirm the role genuinely ceases, set a fair selection pool and objective criteria, put affected employees on notice that they are at risk, and consult with each of them individually and in good faith. During consultation you must genuinely consider alternatives, from redeployment and reduced hours to voluntary redundancy, and offer any suitable alternative role with a four-week trial period.
Only then do you confirm the redundancy, give correct statutory notice, prepare the RP50 and make the statutory payment, and allow reasonable paid time off to seek new work. Rushing or skipping consultation is the most common reason a genuine business decision ends up as a claim. Our redundancy process guide and our note on rushing statutory payments walk through where it goes wrong.
- Confirm the role, not the person, genuinely ceases or diminishes
- Set a fair selection pool and objective, consistently applied criteria
- Put affected employees on notice that they are at risk and consult individually
- Genuinely consider alternatives: redeployment, short-time, lay-off, voluntary redundancy
- Offer any suitable alternative role, with a four-week trial period
- Give correct statutory notice, prepare the RP50 and make the payment
- Allow reasonable paid time off to look for new work
Make sure it stands up to scrutiny.
Is the Role Actually Redundant? What the WRC Looks At
Under the Redundancy Payments Acts, a redundancy is genuine when the employer requires fewer workers to do the same work, or when the work the employee was doing ceases or diminishes. The key is the role, not the individual.
If a similar vacancy is advertised or filled within a short period after the redundancy, the WRC will treat it as evidence that the role was not genuinely redundant. This is the single most common reason redundancy-related WRC claims succeed.
It does not matter how carefully you calculated the statutory payment if the genuine test fails. Before you issue notice, PurpleTree reviews whether the redundancy can withstand WRC scrutiny and advises on the correct framing. See our article on the genuine redundancy test in Ireland for a detailed walkthrough of how adjudicators apply it.
- Assessment of whether the redundancy meets the legal 'genuine' test
- Advice on role restructuring and timing to minimise WRC risk
- Guidance on what constitutes an alternative role for the purposes of the Acts
- Review of any planned rehiring or role reconstruction
Every payment worked out to the cent.
What You Owe and How to Calculate It Correctly
Under the Redundancy Payments Acts, employees with at least two years of continuous employment are entitled to a statutory redundancy payment calculated as two weeks of gross pay per year of service, plus one bonus week. Gross weekly pay is capped at €600 for the purposes of this calculation.
A ten-year employee at €600 per week or above therefore receives a minimum statutory payment of €12,600 (21 weeks at €600). This is a floor, not a ceiling. Enhanced terms can be agreed, but once offered in writing, they are contractual.
Errors in the calculation, whether by understating service, miscounting weeks, or applying the wrong pay figure, lead directly to WRC claims under the Acts. PurpleTree calculates statutory entitlements correctly, prepares the RP50 form, and ensures the payment is made within the required timeframe. See our article on statutory redundancy qualifying service for the detail on what counts as continuous employment.
- Correct statutory redundancy calculation for each employee
- RP50 form preparation and submission
- Advice on enhanced terms and the risk of setting contractual precedent
- Minimum notice period calculation and compliance
Catch the duties that catch others out.
The Obligations Most SMEs Miss
When five or more employees are made redundant within a 30-day period in a business with 20 to 49 workers, the Protection of Employment Acts impose additional obligations beyond the standard redundancy process. The employer must notify the Minister for Enterprise, Tourism and Employment at least 30 days before the first dismissal takes effect.
Employee representatives must be informed and consulted in good faith, specifically on measures to avoid redundancies, reduce the numbers affected, and mitigate the consequences. These consultations must be genuine, documented, and completed before notice is given.
Failing to notify the DETE, failing to consult properly, or issuing redundancy notices before the 30-day period has elapsed exposes the employer to criminal prosecution and civil claims. PurpleTree manages the notification and consultation process for employers in a collective situation. See our article on collective redundancy and outsourcing obligations for detail on how the rules apply in complex structures.
- DETE notification prepared and submitted within the required timeframe
- Employee representative consultation process structured and documented
- Advice on timing of notices to comply with the 30-day minimum
- Guidance on 'measures to avoid' consultation obligations
Fair choices you can stand over.
Selection Criteria That Hold at the WRC
Even a genuinely redundant role can give rise to a successful WRC claim if the selection process is unfair or discriminatory. Selection criteria must be objective, consistently applied, and must not operate as a proxy for any of the nine protected grounds under the Employment Equality Acts.
Common failures include LIFO applied without considering protected-ground implications, subjective criteria that favour certain employees, or failing to inform the selected employee of the criteria used. Employees also have a right to be considered for any suitable alternative roles before redundancy is confirmed.
PurpleTree designs the selection matrix, manages the employee consultation meetings, ensures all offers of alternatives are properly documented, and produces the paper trail that protects your position if a claim follows. See our redundancy process guide for Irish employers for a step-by-step walkthrough.
- Objective selection criteria matrix designed and applied consistently
- Employee consultation meetings structured and minuted
- Alternative role assessment and documentation for each affected employee
- Full process documentation in the event of a WRC challenge
The awkward situations handled properly.
Redundancy Edge Cases Employers Get Wrong
Most redundancy claims we defend do not turn on the headline rules. They turn on the situations the rules do not obviously cover, where an employer assumes an exemption that does not exist, or treats a transfer or a lay-off as a clean redundancy when it is not. We flag the edge cases before notice is issued, not after a claim lands. For the detail, see the edge cases employers get wrong, the rights of mislabelled contractors, and how redundancy interacts with a business transfer under TUPE.
Fixed-term expiry
Not renewing a fixed-term contract can still be a redundancy or a dismissal. Assuming it is exempt is a common, costly error.
Lay-off and short-time
After a qualifying period of lay-off or short-time, an employee can claim redundancy from you, on their initiative rather than yours.
Mislabelled contractors
A contractor found by the WRC to be an employee can claim redundancy and more. The label on the contract does not decide status.
Protected leave
Selecting someone because of maternity, parental or sick leave risks an automatic unfair dismissal, regardless of the business case.
TUPE, not redundancy
On a transfer of business, roles usually transfer with their terms. Dismissing instead of transferring can be unlawful.
Enhanced terms set precedent
Once an ex-gratia or enhanced package is offered in writing, it can become a contractual expectation for the next round.
Planning redundancies? Talk to us first.
Every step of the Irish redundancy process carries legal exposure if it is not done correctly. PurpleTree manages the process from the genuine-redundancy assessment through to statutory payment and, if needed, WRC defence. Redundancy projects are scoped per case and quoted in writing in advance, and for retainer clients sit alongside your monthly HR support. See how we price HR support, then contact our team before the first notice is issued.
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Common questions from employers
Statutory redundancy is two weeks of gross pay for each year of continuous service, plus one additional week's pay. Gross weekly pay is capped at €600 for the calculation, so a ten-year employee earning €600 a week or more receives a minimum of 21 weeks, which is €12,600. Enhanced terms can be agreed, but once offered in writing they become contractual.
Employees with at least two years, that is 104 weeks, of continuous service in insurable employment qualify for a statutory redundancy payment. Service length, the correct pay figure and continuity all have to be counted correctly, which is where many calculations go wrong. See our guide to qualifying service.
The statutory redundancy lump sum is exempt from income tax, USC and PRSI. Any additional ex-gratia or enhanced payment may be partly tax-free under the redundancy tax reliefs, depending on length of service and earnings, so the statutory and ex-gratia parts are treated differently.
A redundancy is genuine when the employer needs fewer people for the same work, or the work itself ceases or diminishes. It is about the role, not the individual. Advertising or filling a similar role shortly afterwards is the single most common reason redundancy claims succeed at the WRC.
Collective redundancy is where a set number of roles, relative to your total headcount, are made redundant within a 30-day period. It triggers a mandatory 30-day information and consultation process with employee representatives and written notification to the Minister for Enterprise, Tourism and Employment before any notice takes effect.
Statutory minimum notice rises with service: one week for 13 weeks to two years, two weeks for two to five years, four weeks for five to ten years, six weeks for ten to fifteen, and eight weeks above fifteen years. The contract may provide for more, and notice is separate from the redundancy lump sum itself.
Only with great care. Employees on maternity, parental, adoptive or sick leave have protected status, and selecting someone because of protected leave can amount to an automatic unfair dismissal. The redundancy must be genuine and the selection must be demonstrably unrelated to the leave.
Redundancy is a specific, lawful reason for dismissal: the job, not the person, is no longer needed. It only holds up if the redundancy is genuine and the process is fair. Get either wrong and the same set of facts becomes an ordinary unfair dismissal claim instead.