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ARTICLE · 01 JULY 2010

Redundancy: Counting the Cost

LK Shields
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In two recent cases, the Employment Appeals Tribunal has handed down substantial awards - €127,350 and €87,000. The tribunal is penalising employers who fail to adhere to 'fair procedures', even when there is a genuine redundancy situation. Aoife Bradley reports.

IrelandEmployment and HR
Aoife Bradley
Aoife Bradley
In two recent cases, the Employment Appeals Tribunal has handed down substantial awards - €127,350 and €87,000. The tribunal is penalising employers who fail to adhere to 'fair procedures', even when there is a genuine redundancy situation. Aoife Bradley reports.

In recent times redundancies have been an unavoidable reality for many companies. However, now more than ever, tribunals and courts are scrutinising the actions of employers who claim that the dismissal of an employee was due to redundancy and the issue has become one of the most problematic and significant in employment law.

In the two cases in question, Mackey v Resource Support Services Limited (UD56/2009) and Fennell v Resource Facilities Support Limited (UD57/2009), both claimants held managerial roles - regional manager and area manager respectively - and they were made redundant as part of their employer's restructuring. The tribunal held that while both were genuine redundancies,

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