Redundancy is one of the most legally sensitive decisions an employer can make. Under Irish law, a dismissal is presumed unfair unless the employer can show otherwise, so the quality of your process and your records matters as much as the decision itself. Below, Caroline Reidy of NFP HR Solutions explains what the law requires, followed by practical steps for keeping accurate records.
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
A Practical Checklist Before You Start
- Write down the business rationale before any conversations take place.
- Define objective selection criteria and apply them in the same way to everyone in the pool.
- Consult meaningfully and give employees a real chance to respond.
- Explore alternatives such as redeployment or reduced hours, and record what you considered.
- Document every stage, including meetings, decisions and the reasons behind them.
How Accurate Workforce Records Support a Fair Process
A fair process depends on evidence. If a dispute reaches the Workplace Relations Commission, you will need to show how the decision was reached, not just state it. Reliable workforce data helps:
- Consistent records. Time and attendance software keeps accurate, exportable records of hours worked for every employee.
- Absence records in one place. Absence management gives HR a consistent, central record, rather than notes spread across spreadsheets and emails.
- Documents stored securely. Document management keeps contracts, letters and meeting notes together and easy to retrieve.
- Visibility of labour costs. Workforce management shows where labour costs sit by team and site, so cost decisions are based on data, not assumptions.
Which criteria are appropriate in your situation is a question for your HR adviser or employment lawyer. What Time Point provides is the record that lets you evidence the process.
Book a demo to see how it works.
FAQ
What makes a redundancy genuine in Ireland?
There must be a clear business rationale, and the role must genuinely be redundant. Under the Unfair Dismissals Act 1977, a dismissal is presumed unfair unless the employer can show otherwise.
What can make a redundancy unfair?
Inconsistent selection criteria, failure to consider alternatives, and missing documentation can all lead to a finding of unfair dismissal, as a 2025 WRC decision illustrated.
What records should an employer keep during a redundancy process?
Keep the business rationale, the selection criteria, consultation notes, the alternatives considered and the reasons for each decision.