Rainey Collins Lawyers

False redundancies don’t pay

By Alan Knowsley, Monday, 20 December, 2010, Business, Employment

In an important case an employee was awarded $10,000 from his previous employer for making the employee redundant then re-advertising his role.

The employer had told the employee that as sales were not as high as anticipated, it was more financially viable to let him go.

Three weeks later the employee saw two advertisements for the same position with the company.  On enquiry, he was told the advertisements were “mistakes”.

The employee raised a grievance and the Employment Relations Authority awarded in favour of the employee.  The employer was ordered to pay $10,000 for hurt and humiliation, loss of dignity and injury to the employee’s feelings.  The employee was entitled to be given information on the vacancy and may have avoided redundancy if he had the option. 

This case is a timely reminder that all redundancies must be genuine.  You cannot disguise a disciplinary or performance issue with a redundancy or you become vulnerable to a personal grievance being filed against you.

If you are currently dealing with redundancies, or for further information, phone Alan Knowsley on 0800 733 424 for an initial free relaxed chat about our services.

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