REDUNDANCY INFO

Independent Information on Redundancy in Ireland

Text Box: Deciding Whether Employment is Continuous

As a general rule employment is regarded as continuous unless it has been terminated by dismissal or the employee leaves his or her employment voluntarily. The Employment Appeals Tribunal normally presumes that a person’s employment was continuous unless the contrary is proved.

Where a redundant employee receives a redundancy lump sum payment, his/her continuity of employment is broken.

Regarding redundancies notified/declared on or after 10th April, 2005, this presumption of continuity of employment has been further strengthened, save in obvious situations like dismissal or resignation. It is explicitly stated that continuity of employment is preserved in all periods of -
- Sickness,
- Lay-off,
- Holidays,
- Service in the Reserve Defence Forces of the State,
- Leave not included in the above, but authorised by the employer (e.g. career break),
- Leave under Adoptive Leave legislation,
- Leave under Maternity Protection legislation,
- Parental leave,
- Force majeure leave,
- Carer’s Leave,
- Absence because of a lock-out by the employer or because of anticipation in a strike.

The presumption of continuity of employment is also safeguarded with the following rules for calculating continuous employment -

(i) Employment will be taken to be continuous unless it has been terminated by dismissal or the employee leaves his/her employment voluntarily.

(ii) The Employment Appeals Tribunal, in any case which comes before it, shall presume that a persons employment was continuous unless the contrary is proved.

(iii) When a redundant employee receives a redundancy lump-sum payment, his/her continuity of employment is broken, except in the case referred to at (viii).

(iv) If an employee is dismissed for redundancy before attaining 104 weeks’ continuous service and resumes employment with the same employer within 26 weeks, her/his employment will be treated as continuous.

(v) Continuity of employment will not be broken through an employee being involved in a strike or lock-out.

(vi) Where an employee is re-engaged by a company which is an associated company of the company that formerly employed him/her, continuity of employment will not be broken if the re-engagement takes place within four weeks of  the employees dismissal. For the purpose of this provision, two companies shall be taken to be associated companies if one is a subsidiary of the other or both are subsidiaries of a third.

(vii) Where an employee voluntarily transfers from one employer to another and both employers and the employee agree that all the employee’s service will be regarded as continuous employment with the 2nd employer, the transfer will not break continuity. In a case of this kind, the first employer will not be liable for redundancy payment.

(viii) Continuity of service is preserved (whether or not a redundancy lump sum has been paid), where redress by way of re-instatement or re-engagement is obtained under the Unfair Dismissals Acts.  


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