When the collective rules kick in
The "collective redundancy" rules apply when, within any 30-day period, an employer plans to let go at least: 5 people (workforce of 21–49), 10 people (50–99), 10% of staff (100–299), or 30 people (300+). If your company announced dozens or hundreds of cuts, you're covered.
Being let go on your own, or in a small business? The 30-day consultation rule doesn't apply, but your employer must still follow a fair procedure and you can still ask questions and negotiate. The section further down is for you.
The timeline, from announcement to last day
- 1The announcement. The company tells staff it's proposing redundancies. At this point they are proposals, not decisions. Nobody has legally lost their job yet.
- 2Employee representatives. Consultation happens through your union or elected employee representatives. If there's no union, staff choose representatives. This is who negotiates on your behalf, so pay attention to who it is.
- 3The 30-day consultation. It must start at least 30 days before the first dismissal takes effect, and the employer must also notify the Minister for Enterprise, Trade and Employment. The law says consultation must be carried out "with a view to reaching agreement", so it can't be just for show.
- 4Voluntary redundancy (sometimes). Many companies first ask for volunteers, often with a sweetened package, before selecting anyone. If you were already thinking of moving on, this can be worth weighing up carefully.
- 5Selection. If there aren't enough volunteers, the employer applies the selection criteria (which must be objective and applied consistently) to decide whose roles go.
- 6Notice. You get your statutory or contractual notice (whichever is longer), or pay in lieu of it. During your last 2 weeks of notice you're entitled to paid time off to look for a new job.
- 7Last day and payment. You're paid your redundancy along with final wages and unused holidays. See everything you're owed to make sure nothing is missing.
What your employer must tell you, by law
Under the Protection of Employment Act 1977, during the consultation your employer must give the representatives written information covering:
- The reasons for the redundancies.
- How many jobs are affected, and which types of roles.
- The total number employed, and the period over which dismissals will happen.
- The selection criteria: how the company will decide who goes.
- The method of calculating any redundancy payment above the statutory minimum. This is where the ex-gratia formula appears in writing.
Consultation must also cover whether the redundancies can be avoided or reduced (redeployment, reduced hours, other options). Dismissal notices cannot take effect before the 30 days are up.
The package: what's fixed and what's negotiable
Two very different pieces make up your money:
Statutory redundancy: fixed by law
2 weeks' pay per year of service plus a bonus week, capped at €600/week, tax-free. No negotiation needed and it can't be bargained away. It's your floor.
Ex-gratia: decided by the company
There is no law setting this amount. It's usually expressed as a number of weeks' pay per year of service, and it's what the consultation negotiation is really about.
How much do companies offer? It genuinely varies: anything from statutory only up to several weeks' pay per year of service on top. It depends on the company's finances, what it paid in previous redundancy rounds (always ask), what similar employers pay, and how strongly the representatives negotiate. Larger employers tend to offer more.
Money isn't the only negotiable item. Depending on the company, these can also be on the table:
- Leaving dates (a later date can mean more service, and time to find a job while still employed).
- Notice: working it, or being paid in lieu and leaving sooner.
- Outplacement support: CV help, career coaching, training budgets.
- Benefits: keeping health insurance to a set date, bonus treatment, share/stock treatment.
- References agreed in advance.
Questions worth asking during consultation
Ask through your representatives, or directly at the Q&A sessions. Get answers in writing where you can.
- ? Exactly how will my payment be calculated, statutory and ex-gratia? Can I have it in writing, with my own figures?
- ? What are the selection criteria, and how was I scored against them?
- ? What did the company pay in previous redundancy rounds?
- ? Is voluntary redundancy on offer, and is its package better?
- ? Are there alternative roles, relocation or reduced-hours options instead of redundancy?
- ? What happens to my bonus, unused holidays, health insurance and share schemes?
- ? What's my exact last day, and will I work my notice or be paid in lieu?
- ? Is outplacement support (CV, coaching, training) included?
Before you sign anything
Ex-gratia payments often come with a severance or waiver agreement: you get the enhanced package, and in return you give up the right to bring certain claims against the employer. That can be a perfectly fair trade, but three things first:
- Take your time. You don't have to sign in the meeting. A reasonable employer gives you days, not minutes.
- Get advice before signing away legal rights. Many employers pay a contribution towards independent legal advice; ask if yours does.
- Your statutory redundancy is yours regardless. A waiver can't remove your legal minimum.
If you believe the redundancy isn't genuine or your selection was unfair, you can bring a claim to the Workplace Relations Commission. Deadlines are short (usually 6 months for unfair dismissal claims), so don't sit on it.
If it's just you, or a handful of people
Below the collective thresholds there's no 30-day consultation duty, but the essentials don't change:
- The redundancy must still be genuine (about the role, not about you) and the selection fair.
- Your statutory redundancy, notice, unused holidays and final pay are all still owed in full.
- You can still ask for more than statutory. Smaller employers pay ex-gratia too, especially for long service. The worst they can say is no.
- The questions above and the advice about signing apply exactly the same.