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Redundancy & Settlement Agreements

The statutory floor, the ex gratia layer — and the leverage the process questions create.

Redundancy is the most common doorway into a settlement agreement — and the most commonly misunderstood: people sign packages that are substantially entitlements dressed as generosity, and waive claims a tribunal would have taken seriously. The structure is simple once seen: a floor fixed by law, a layer purchased above it, and leverage created by how the process was run.

The Floor and the Layer

The floor: statutory redundancy, where the redundancy is genuine and you qualify, is fixed by law — it cannot be bargained below, and no settlement agreement reduces it; accrued holidays and proper notice sit on the floor with it. The layer: everything genuinely above — the ex gratia enhancement, the agreed reference with wording attached, the announcement line, notice garden-leaved with benefits running, outplacement, the carve-outs handled consciously — is what your waiver is purchasing, and the review’s first audit is exactly this separation: how much of the package is floor, how much is layer. The non-money layer deserves particular respect in redundancy exits: the money leaves the account once, while the reference and the narrative compound for years — and “redundancy” itself, locked in writing as the agreed framing, is a departure story that carries no stigma. One flag: new restrictive covenants have no place in a redundancy exit, and their appearance is a negotiation point, never boilerplate.

The Leverage — and the Three Roads

Leverage in redundancy settlements comes from the tribunal’s questions: is the redundancy genuine — a real diminution in work of your kind, or a dismissal in redundancy’s clothes? Was selection fair — objective criteria honestly applied, or a matrix reverse-engineered around a chosen name? Was consultation real — capable of changing the outcome, alternatives genuinely explored? Each doubtful answer is a claim with value, and the package is the price of waiving it — deployed with precision rather than brandished, the employer left a dignified route to the better number. Where the questions have bad answers, three roads get compared honestly: negotiate up (usually right — the risk priced into the deal); contest through the statutory route (the slower road for strong claims badly underpriced — the firm’s dedicated practice at redundancysolicitors.ie carries that terrain); or, rarely, urgent remedies where a dismissal is being executed in clear breach — the territory of the firm’s injunction practice. Mid-consultation, one discipline above all: sign nothing, resign from nothing, agree nothing verbally — leverage is most alive exactly when it’s most easily spent, and the sequencing conversation belongs before the next meeting.

A Redundancy Package on the Table?

The floor separated from the layer, the process questions valued, the three roads compared - within 48 hours, before the next consultation meeting.

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Redundancy & Settlement - FAQs

As floor and building: STATUTORY REDUNDANCY, where the redundancy is genuine and you qualify, is an entitlement fixed by law - it cannot be bargained below, and a settlement agreement never reduces it; what agreements do is build ABOVE the floor: the ex gratia layer (the enhancement beyond statutory), the notice handling, the reference and announcement terms, in exchange for the waiver of claims. The review’s first audit in any redundancy settlement is exactly this separation: how much of the package is the floor you’re owed regardless, and how much is genuine enhancement being purchased with your waiver - because packages are sometimes presented as generosity while consisting substantially of entitlements.