Employee waived minimum notice rights through informed redundancy agreement.

The Complainant, a long-serving worker with 38 years at the Respondent's Sligo store, gave evidence he was informed in January 2024 that the deli counter he worked on would close. He and a colleague were offered alternative roles or voluntary redundancy. He queried his entitlement to statutory minimum notice (8 weeks) and later received a draft settlement agreement with a redundancy offer under the Tesco/Union scheme (5 weeks per year of service), which included a full waiver of statutory rights, including under the Minimum Notice and Terms of Employment Acts (MNTEA). Despite further queries, he received no clarity regarding his notice pay. On legal advice from his union, he signed the agreement in February 2024, believing he could later pursue the notice entitlement. He claimed his waiver was not fully informed, as he did not realise he was surrendering his right to statutory notice. 

The Respondent argued that the WRC lacked jurisdiction to hear the Complainant’s claim under the MNTEA, as he had voluntarily waived all statutory and contractual rights in signing a redundancy settlement. The Complainant’s supervisor gave evidence that the Complainant had actively sought a redundancy deal, particularly after being moved off the Deli counter, and had signed a voluntary redundancy application and a draft settlement letter in January 2024. The waiver explicitly included MNTEA rights, and the Complainant had over a week to obtain legal advice. At the final meeting in February 2024, attended by a shop steward, the waiver and payment terms were explained, and the Complainant signed. Mr. McClintock confirmed the Complainant queried minimum notice afterward but was informed it was excluded. The Respondent maintained that voluntary redundancy does not trigger MNTEA entitlements, and the Complainant had knowingly accepted this.

The Adjudicating Officer found the complaint not well founded for two reasons:

(a) Minimum notice under the MNTEA does not apply in voluntary redundancy situations where the employee chooses to end employment;

(b) The Complainant knowingly and voluntarily waived his rights under the MNTEA. The Complainant had the choice to remain employed or accept voluntary redundancy, and he opted for the latter. He had one week to review the settlement agreement and consult his trade union, which advised him to sign. The waiver he signed clearly referenced the MNTEA, and he admitted being aware of this. The Adjudicator concluded the waiver was fully informed and binding.

Employers should:

• When offering voluntary redundancy, employers must ensure the process is clearly presented as an option, not an imposition. Employees should be offered a meaningful choice between continuing employment and accepting redundancy, with transparent communication of the implications. Document everything.  
   
  
• Employers should also ensure that settlement agreements include a comprehensive waiver of statutory and contractual rights and that these are communicated plainly. A reasonable timeframe should be given to allow employees to obtain independent legal advice, and employers should confirm that this opportunity has been provided. Including a clause confirming legal advice was offered and accepted can help protect the employer if the agreement is later challenged.
   
  
• Employers should avoid ambiguity around entitlement to statutory payments like minimum notice. Any exclusions must be explicit in the agreement and supported by proper communication.

The full case can be found here:
 https://www.workplacerelations.ie/en/cases/2025/april/adj-00052400.html