WRC found that an employee was dismissed by reason of redundancy following the closure of the business and awarded statutory redundancy based on his proven earnings and service.

The Complainant stated that he had been employed as a full-time bartender and that his employment terminated in July 2024 when the restaurant closed down. He said he had worked for the employer for more than two years and therefore believed he was entitled to statutory redundancy. He gave evidence that he had repeatedly contacted his employer by email and phone seeking payment, but was told to wait due to financial difficulties and subsequently received no response. He denied the Respondent’s assertion that he had been given three months’ notice or offered suitable alternative employment in a sister company, stating that no such offer had been made. He also disputed the accuracy of the contract produced by the Respondent, including the stated hourly rate. He submitted payslips showing he earned €16.50 per hour and worked full-time hours, with gross weekly earnings of approximately €660.

The Respondent did not attend the hearing but communicated, making a number of assertions regarding the termination of employment. They suggested that the Complainant had been given adequate notice and had been offered alternative employment in a related business, which he allegedly declined due to travel and the nature of the work. The Respondent furnished documentation purporting to be the contract of employment, indicating a lower hourly rate than that claimed by the Complainant. However, these assertions were not tested. The Respondent did not provide documentary proof of any redundancy payment, alternative role, or valid defence to the claim.

The Adjudicating Officer held that that the Complainant had been dismissed by reason of redundancy within the meaning of s.7(2)(a) of the Redundancy Payments Act 1967, as the business had ceased trading. Weight was placed on the sworn and uncontested evidence of the Complainant, particularly in light of the Respondent’s failure to attend the hearing. The Adjudicator accepted the payslips submitted as reliable evidence of the Complainant’s earnings and full-time status. The Respondent’s claims regarding alternative employment and contractual terms were not substantiated and were rejected. It was determined that the Complainant had the requisite insurable employment and sufficient reckonable service to qualify for statutory redundancy. Accordingly, the complaint was held to be well founded and statutory redundancy was awarded, calculated on a gross weekly wage of €660 subject to the statutory cap of €600, and based on the Complainant’s service.

Employers should:

1. Ensure that redundancy situations are managed in strict compliance with the Redundancy Payments Acts. Where a business closes or ceases trading, employees with the requisite service automatically acquire a statutory entitlement to redundancy, regardless of the employer’s financial position.
2. Retain accurate contracts, payslips, and records of hours worked, and employers must be in a position to substantiate any assertions regarding notice, alternative employment, or contractual terms.
3. Always attend WRC hearings or be properly represented. 
   
   

The full case can be found here.