Redundancy Advice
Redundancy occurs when your job no longer exists, usually due to changes in your employer’s business needs, financial difficulties, or restructuring. If you are facing redundancy in Ireland, you are entitled to specific protections and compensation under Irish employment law.
Your employer will usually require that you obtain independent legal advice from a solicitor before signing any Agreement, and most employers will cover the cost of you getting this independent legal advice.
Cashin Clancy Solicitors have extensive experience in employment law, having advised hundreds of clients undergoing redundancy, over the years, both in County Clare and indeed, further afield. We can expertly advise you on the legal aspects of your redundancy, and in particular, on the Compromise Agreement offered to you.
Once you instruct us to represent you, we will review the proposed Compromise Agreement, and we will promptly arrange a consultation with you to advise you on your redundancy situation, and to witness your signing of the Agreement, if you proceed.
Key Rights of Employees in Redundancy:
- Minimum Notice: Employees with at least two years of continuous service are entitled to a minimum notice period, which depends on your length of service.
- Statutory Redundancy Payment: If you have worked for your employer for at least two years, you are entitled to a statutory redundancy payment. The statutory entitlement is calculated as two weeks’ pay for each year of service, plus an additional week’s pay. It is tax-free up to certain limits.
- Fair Selection Process: Your employer must follow a fair and objective process when selecting employees for redundancy. It must be a genuine redundancy situation, and not a smokescreen to try and dismiss you without following the correct procedures.
- Right to Appeal: You can challenge your selection for redundancy if you believe it is unfair.
Compromise Agreements:
A Compromise Agreement (or Settlement Agreement) is a legally binding document between you and your employer, setting out each side’s rights and obligations, usually offered during redundancy. In some cases, your employer may offer compensation above the statutory redundancy amount, for example, enhanced redundancy pay or other benefits, known as an ‘ex gratia payment’, and usually in exchange for you agreeing not to pursue any claims against your employer, following termination.
What to Consider in a Compromise Agreement:
- Legal Advice: You are required to seek independent legal advice before signing the Agreement, as the agreement will provide that you waive your right to bring any claim or dispute in relation to termination of your employment in the future.
- Additional Compensation: Ensure that the extra payments offered are reasonable and reflect your personal situation.
- Taxation: Any ex-gratia payments are likely to be subject to tax, and there will usually be information about your income tax liability in the agreement.
- Confidentiality: Some agreements may include a confidentiality clause, restricting you from discussing the details, and from publicly criticising your employer.
- References: Your employer will set out what they are prepared to provide to you by way of an Employee Reference, for when you leave.
At Cashin Clancy Solicitors, we offer expert advice in a clear and timely manner, and in a way most convenient to you, our client.
We can arrange a consultation with you for either in person, or, online, which means we offer this service to clients nationwide, and at a time (including outside of usual office hours), to facilitate your own personal needs.
Please contact Pamela Clancy Solicitor on pclancy@cashinclancy.ie , or, Fiona Burke Solicitor on fburke@cashinclancy.ie or telephone us on 0656840060 to arrange a consultation. www.cashinclancy.ie
