
The Bar of Ireland
Orchard Way, Killarney V93Y9W9.
DX: 51010 Killarney
Tel: (087) 4361270
Patrick's legal education is robust, beginning with a BCL Law Degree from University College Cork (2012-2016), followed by an LL.M in Business Law from the same institution (2016-2017), and culminating in a Barrister-at-Law Degree from The Honorable Society of King’s Inns in Dublin (2019-2021). He has extensive experience on the South-West Circuit, handling Civil, Family, and Criminal Law cases, as well as advising the Citizen Advice Service. He has worked as an employment consultant, dealing with workplace investigations and bankruptcy procedures.
Background:
The Complainant was hired by an online education company as a Commercial Account Executive in Dublin, starting June 2019. The Complainant asserted her eventual selection for redundancy was unfair and pre-determined. She began her employment on a UK/Ireland Commercial team in Dublin and advanced to a global management role on in April 2021, then to Director in April 2022. Disputes arose in 2022 between internal teams over deal attribution, and the Complainant felt excluded from the Dublin office culture. In December 2022, her role and others were regionalised under the Dublin Commercial team, with only five of the eight leadership roles retained for 2023. The Complainant alleged a biased, subjective selection process lacking transparency and consultation. She faced difficulties during interviews and claimed a lack of feedback and HR involvement. Despite her efforts to find alternative employment, she faced ongoing financial losses.
The Respondent outlined that due to economic challenges and a focus on future growth, the company announced a global workforce reduction of 20% in December 2022. On December 12, 2022, the Complainant was informed that her role was at risk of redundancy, with only five managerial positions remaining. The selection process was based on past performance (20%) and a competency-based interview (80%). Despite efforts to find her alternative employment within the company, no suitable role was available, and her employment terminated on February 10, 2023, after receiving all entitlements. The Respondent disputed allegations of bias, asserting the redundancy process was fair and in line with the Redundancy Payments Act 1967. The selection criteria and interview process were consistent, objective, and designed to match the new leadership roles' competencies. The Complainant was given an opportunity to appeal but did not. The Respondent maintained that the Complainant's dismissal was procedurally and substantially fair, with no evidence supporting claims of a predetermined outcome.
Finding:
The Adjudicating Officer’s decision under Section 6(1) of the Unfair Dismissals Act 1977 highlights that a dismissal is deemed unfair unless justified by substantial grounds. Section 6(4)(c) specifies that redundancy is not an unfair dismissal if the dismissal results wholly or mainly from redundancy, as defined under Section 7(2) of the Redundancy Payments Acts 1967 to 2014. The employer must demonstrate that the dismissal was due to redundancy and that the selection process was fair.
In this case, the Respondent claimed the dismissal was due to a global reduction in workforce and restructuring, reducing leadership roles from eight to five. The Complainant argued the selection process was biased and lacked transparency. The Adjudicator found the redundancy genuine but determined the selection criteria and process were not fairly and objectively applied, failing to prove the dismissal was fair. The Complainant was awarded €112,000 compensation, as her financial loss due to dismissal was established. The Respondent did not meet the burden of proof to show the selection process was fair and transparent.
Practical Guidance for Employers:
- Ensure Transparency: Clearly communicate the criteria and process for selection during redundancy to all employees. Lack of transparency can lead to perceptions of bias and unfairness.
- Objective Criteria: Use consistent, objective criteria for performance evaluations and competency assessments to avoid any claims of subjectivity or bias.
- Document Process: Keep thorough documentation of the selection process, including criteria used, decision-making rationale, and any communications with employees.
- Consultation and Feedback: Engage in proper consultation with affected employees and provide feedback opportunities. Involve HR to ensure fairness and adherence to legal standards.
- Appeal Mechanism: Provide a fair and transparent appeal mechanism for employees to contest decisions, ensuring the process is viewed as impartial.
The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/july/adj-00044941.html
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