In recent times the need to carry out redundancies is an unavoidable reality for many employers. Now more than ever tribunals and courts scrutinise employers who claim that the dismissal of an employee was due to redundancy. An employer must be able to show that a genuine redundancy existed and it had no other option but to terminate the employment. 

The Employment Appeals Tribunal (“the EAT”) recently awarded €161,420 to an employee whose employer claimed that his position had become redundant.

Among the central arguments of the employer in the case was that the employee was encouraged to apply for one of two alternative roles but had refused both. The employee argued that one of these new roles was “practically identical” to his own role and he did not therefore accept that the redundancy was necessary. The EAT accepted that there was a downturn in the business and that the redundancies were part of an essential restructuring. However it agreed with the employee’s argument and found that he had been unfairly dismissed.

Employers must act reasonably in effecting redundancies and must consider all alternatives, including any redeployment options. Despite a lengthy redundancy process and redeployment options being considered in this case, the EAT was not satisfied that the redundancy was genuine. 

Accordingly, the size of the award acts as a clear warning for employers.