The Unfair Dismissal Acts require an employer to act reasonably in employee dismissal. To lawfully end employment, the employer must have a straightforward and documented procedure in place and follow it. Employees deserve full and fair procedures that comply with natural justice in the dismissal process. If an employee feels they are being dismissed unfairly, they may ask for a written statement that explains the reasons. Their employer has to provide that statement back within 14 days. Typically, the employee must have at least 12 months' continuous service with the employer before they can bring a claim for unfair dismissal.
The dismissal of an employee is deemed fair if it is because of their capability, conduct, or capacity; it's a result of redundancy; the employment contravenes the law (i.e., the employee's continued employment would be illegal) or for some other substantial reason. An employee can be dismissed without notice if committing gross misconduct such as assault, drunkenness, bullying, theft or other severe employment policy breach. Employment contracts could further contain more gross misconduct examples.
To justify the dismissal, the employer must show that it was connected to one or more of the deemed fair by legislation grounds. They also have to show they followed all procedures and be prepared to disprove any allegations made by the employee that there may be any unfair reasons for the dismissal.
The employer must include the leaving date on the final payroll submission to notify the Revenue Commissions that employment has been ceased so that a new employer receives the correct details. Any remaining payment that the employer owes an employee after leaving should be included in the final payroll submission, including untaken holidays. The employer must also give the employee a payslip and information about what happens to their pension scheme, if applicable.
In light of an employee's constitutional right to justice and fair procedures, a Code of Practice on Grievance and Disciplinary Procedures introduced by The Workplace Relations Commission sets out general dismissal principles:
The Code of Practice indicates what employers should do. While it is technically not legally binding, employers are highly advised to follow it when dismissing an employee.
The procedure should be progressive, starting with an oral warning, followed by a written warning, a final written warning, suspension without pay and dismissal. For each of these stages, specific procedures need to be put in place. There may be instances when dismissal is warranted at an earlier stage of the process.
During the time of awaiting the outcome of an investigation into an alleged breach of discipline, the employee may be suspended on full pay.
Employers should remove warnings from an employee's record after a specified period, advising the employee of that. Good grievance and disciplinary procedure require maintaining adequate records.
Other disciplinary action may include being transferred to another task, demotion or some other appropriate disciplinary action short of dismissal.
An employer must have grounds for dismissing an employee – unfair dismissal in Ireland is covered by the Unfair Dismissals Acts 1977.
Under the Unfair Dismissals Acts, an employee who has worked for more than one year for the same employer is protected by legislation and has the right to challenge a dismissal, even if still on probation.
With substantial grounds justifying the dismissal, the employer must show that they acted reasonably. Every employer planning to dismiss an employee for poor performance should apply fair procedures beforehand. This can be notifying the employee that they are dissatisfied with the performance and allow them to improve before proceeding.
The following dismissals are deemed unfair beyond question:
Statutory redundancy payment kicks in after two years of continuous work with the employer. However, the law allows the employer and employee to agree on it to start earlier or for the sum to be more than the statutory limit.
Employees are entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. A week's compensation is subject to a statutory ceiling, which currently stands at €600 per week. (€31,200 per year). All statutory redundancy payments are tax-free.
Regardless of how long they have been with the company, employees should give at least one week notice to their employers before resigning. However, most employers put a lengthier term contractual notice clause into the employment contract. That could range anywhere from a month for junior roles up to three months for more senior positions. The employer has the option to extend payment in lieu of the notice period.
Employers too need to give notice before terminating an employment contract. Its length depends on the employee's time with the company and is as follows:
There is no requirement for employers to pay severance to employees who have been terminated. An employment contract may provide for a severance payment in the event of a termination by consent. Employers commonly require employees to sign an agreement relinquishing their right to take any future legal action against their employer in cases where they are getting an ex gratia severance.
