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Substantial Award by WRC Highlights Requirement For Redundancy Consultation Even In Circumstances Involving Closure
The Respondent is an Irish registered company that is part of an international provider of finance and IT services to private and public sector businesses. The Complainant joined the company in November 2004 as a sales executive and was an account manager by April 2020 with an annual salary of just over €120,000. In 2020 he was one of six employees of the Irish business. A decision was made to close the sales operation of the Irish entity in 2020. The Complainant and his manager were the only two employees who worked as part of that operation. Both roles were made redundant so selection was not an issue in this case. The Complainant’s job was made redundant on 31 July 2020.
The Complainant was invited to a Microsoft Teams meeting on 27 April 2020. The meeting invite provided no indication of the purpose of the meeting. The meeting was short and the Complainant was informed that his job was going to be made redundant without being provided with an explanation for the decision or an opportunity to suggest or consider alternative options to dismissal. Later that day, he was provided with a breakdown of his statutory redundancy entitlements. He responded, describing the proposed redundancy pay as “derisory and devaluing”. He requested an enhanced payment based on four weeks’ pay per year of service along with a number of other things, including “some leeway” on his private health insurance and employer pension contributions; assistance with an outplacement service; and legal and tax advice. These requests were refused. Certain other matters were agreed and his notice period was extended from 8 weeks to 12 weeks.
Issues
The Complainant’s main arguments were as follows:
- The managing director who dismissed him did not have authority to do so;
- His dismissal did not result “wholly or mainly” because of redundancy; and
- The Respondent failed to follow fair procedures.
- Authority of decision-maker to dismiss
- “Wholly or mainly”
- Fair process