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Can you be laid off in Ireland?

Published in Irish Employment Law 3 mins read

Yes, employees can be laid off in Ireland, but specific conditions must be met for it to be a legal and valid process.

Understanding Lay-offs in Ireland

A "lay-off" in Ireland refers to a temporary cessation of employment where an employer is unable to provide work for their employees. Crucially, the expectation is that the situation is not permanent, and work will resume at some point in the future. This differs significantly from redundancy, which is a permanent termination of employment due to the elimination of a role or a reduction in the workforce.

Key Elements for a Legal Lay-Off

For an employer to legally lay off staff in Ireland, particularly under the Redundancy Payments Acts, three essential elements must be present:

  1. Inability to Provide Work: The employer must genuinely be unable to provide work for their staff. This could be due to a downturn in business, material shortages, or other unforeseen circumstances.
  2. Temporary Situation: The employer must believe that the situation causing the lack of work is temporary, and that work will be available again for the employees in the future.
  3. Notice to Staff: The employer must provide proper notice to staff regarding the need for lay-offs. This notice period can vary and should ideally be outlined in the employee's contract of employment or agreed upon.

Lay-off vs. Redundancy

It's vital to distinguish between a lay-off and redundancy, as they have different legal implications and employee rights.

Feature Lay-off Redundancy
Nature Temporary absence of work Permanent termination of employment
Reason Employer cannot provide work (e.g., lack of orders, material shortage) Employee's job no longer exists or is no longer required
Employee Status Still employed, but not working or being paid (unless agreed) Employment terminated
Expectation Employee is expected to return to work when it becomes available No expectation of returning to the same role
Right to Pay Generally no right to pay during the lay-off period, unless specified Statutory or enhanced redundancy pay is typically due
Right to Redundancy After certain periods (e.g., 4 consecutive weeks or 6 weeks within a 13-week period), an employee may have a right to claim statutory redundancy pay if the lay-off continues Immediate right to redundancy pay if criteria are met

Employee Rights During Lay-off

If an employee is laid off, they may retain certain rights and could be entitled to social welfare payments (such as Jobseeker's Benefit/Allowance) if they meet the eligibility criteria.

Furthermore, if a lay-off is prolonged, employees may gain the right to claim statutory redundancy. Under the Redundancy Payments Acts, if an employee has been laid off for:

  • Four consecutive weeks, or
  • Six weeks within a 13-week period, and the last two of those weeks are consecutive,

and there is no reasonable prospect of work resuming, they can provide written notice to their employer claiming statutory redundancy pay.

Understanding the conditions and distinctions between lay-off and redundancy is crucial for both employers and employees in Ireland. For further details on employment rights and redundancy, you can consult official Irish government resources like Citizens Information.