A recent Workplace Relations Commission (WRC) ruling highlights the importance of fair redundancy processes, as the publisher of IrishCentral.com, Irish Studio Media Publishing Limited, has been ordered to pay €12,000 to a former employee for unfair dismissal.
Background of the Case
The employee, Sinead Behan, had been with the company since 2003, working in various roles before becoming Publishing Director in December 2021. She oversaw print subscriptions for five magazine titles, including Ireland of the Welcomes, which ceased printing in May 2023 due to declining readership and advertising revenue.
As a result of this downturn, Ms Behan’s role was deemed redundant. However, she argued that her dismissal was unfair, particularly as she had lodged a grievance against the CEO in September 2022. The redundancy process commenced in July 2023, months after the grievance procedure was allegedly abandoned by the employer.
Key Findings of the WRC
Adjudication Officer Máire Mulcahy found that Ms Behan’s dismissal was a result of redundancy, but the redundancy consultation process was “inadequate” and unfair. She criticized the company’s approach, describing the consultation as:
- Initiated at short notice
- A mere “tick-box exercise”
- Lacking proper exploration of alternative employment options
- Conducted without offering the complainant the right to be accompanied
Due to these failings, Ms Mulcahy ruled that the redundancy process did not meet the required legal standards, leading to a finding of unfair dismissal.
Financial and Legal Implications
Although the tribunal acknowledged that the company had suffered financial losses, this did not excuse its failure to conduct a fair redundancy process. Additionally, the company had not fully paid Ms Behan’s statutory redundancy entitlements. Out of an estimated €25,332 due, she had only received €8,000.
The WRC found that Ms Behan experienced financial loss amounting to €21,631 between September 2023 and February 2024 when she secured new employment. Taking this into account, Ms Mulcahy awarded her €12,000 in compensation for unfair dismissal, which she deemed “fair and equitable.”
Lessons for Employers
This case underscores the importance of adhering to proper redundancy procedures. Employers should:
- Conduct fair and transparent consultations with employees
- Allow employees to be accompanied during redundancy meetings
- Explore alternative roles within the company before finalizing redundancies
- Ensure full payment of redundancy entitlements
A poorly managed redundancy process can lead to costly legal disputes, reputational damage, and financial penalties. Employers must ensure compliance with employment law to avoid similar outcomes.
For more insights on fair redundancy practices and employment law updates, stay tuned to our blog or contact us at Employment Matters for expert advice.
