Section 40 of the Employment Act sets out deceptively short requirements for a lawful redundancy. In practice, the Employment and Labour Relations Court has developed a detailed body of expectations around notice, consultation and selection.
The first step is establishing a genuine operational justification, documented before any employee is identified. Courts consistently look for board minutes, financial statements or restructuring plans dated ahead of the notices.
Second, notification must reach both the employee and the relevant labour officer, and where a union is recognised, the union. One month of notice, or payment in lieu, is the floor rather than the ceiling.
Third, selection criteria must be objective, applied consistently and capable of explanation. Seniority, skill and reliability are all defensible; unexplained managerial preference is not.
Finally, terminal dues must be computed accurately, including severance at fifteen days per completed year of service, accrued leave and any contractual entitlements. Errors here undo otherwise sound processes.
This article is general commentary and does not constitute legal advice. For advice on your specific circumstances, please contact the firm.
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