Fair Redundancy or Unfair Dismissal?

7 April 2026

Fair Redundancy or Unfair Dismissal?

What Employers Need to Know About Legal Risks and Compliance

NFP article

Fair Redundancy or Unfair Dismissal?

Redundancy remains a necessary lever for organisations navigating cost pressure and restructuring. However, under the Unfair Dismissals Act 1977, every dismissal is presumed unfair unless proven otherwise. A redundancy must be both genuine and fairly executed.

Process and Legal Requirements

A defensible process requires a clear business rationale, objective selection criteria, meaningful consultation, and robust documentation. Where these elements are weak or inconsistent, risk escalates quickly.

Recent Case Law Insight

Recent case law reinforces this. In a 2025 Workplace Relations Commission decision, an employer was found to have used redundancy “as a cloak” to remove a senior employee. The WRC highlighted inconsistent selection criteria, failure to properly consider alternatives, and a notable absence of supporting documentation. The dismissal was ultimately deemed unfair.

Implications for Employers

The direction of travel is clear. Process matters as much as outcome. Employers must be able to evidence not just why a role is redundant, but how the decision was reached.

Key Takeaway

The takeaway is practical: plan early, consult meaningfully, apply objective criteria, genuinely explore alternatives, and document every stage.

 

If you require further support or advice relating to HR, please do not hesitate to contact us at hrsolutions@nfpireland.ie / (066)7102887.

For more information visit https://nfpireland.ie

 

Caroline Reidy, Head of NFP HR Solutions Ireland Limited, HR and Employment Law Specialist