Important Reminder for Employers to offer other roles in the event of Redundancy

In a recent decision of the WRC in relation to the case of ‘McGillycuddy v Avoca Handweaver Shops LTD’, the Complainant (Mr. McGillycuddy) who was an executive chef in the Respondent’s company between 2010 and 2020 succeeded in an unfair dismissals case. He was awarded the sum of €57,166 gross which amounted to 7 months’ salary.

Mr. McGillycuddy’s role was made redundant allegedly due to the financial impacts of Covid 19.

In his claim the Complainant submitted that there was no proper consultation process, the alternative employment options were not given to him, and the selection process of redundancy was not explained to him.

The company on the other hand argued that there had been a full consultation process, and that the redundancy was justified due to a restructuring process brought about by the challenges associated with the Covid 19 pandemic.

The WRC while accepting that there was some adverse impact of the Covid 19 pandemic made the following findings:

1. That the impact of the business and in particular executive and head chef roles was not adequately explained.
2. That the process was effectively made personal and there was no sufficient impersonality involved.
3. There were two chef manager roles advertised and Mr. McGillycuddy was not advised of these roles.

The adjudicator referred to relevant case law including Thomas & Betts Manufactory v Harding and Gillian Free & Oxygen Environmental UD v Oxygen Environmental UD which both emphasised the obligation on an employer to consider alternatives for employment and to advise the employee who is being made redundant of these alternatives.

Summary: When making an employee redundant it is extremely important to ensure the following:

1. That the selection process is fully explained.
2. There is proper consultation.
3. That it is the role and not the person that is being made redundant.
4. That any alternative re deployment options is made known to the employee in question.

For further advice on this and any other queries please don’t hesitate to contact Donna Phelan or Adam Rockett on 01 296 0666