Guide to Employee Dismissal in Republic of Ireland
This guide for employee dismissal in Republic of Ireland covers termination rules, procedures, severance, and legal requirements for employers.
This guide outlines how Irish law regulates different types of dismissal, from redundancy and poor performance to misconduct and long-term illness. It also explains employer responsibilities around notice, severance, documentation, and dispute resolution.
Whether you’re an employer managing terminations across multiple jurisdictions or an employee trying to understand your rights, this guide provides a clear overview of how dismissals work in the Republic of Ireland as of 2025.
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Grounds for Termination in Republic of Ireland
Employers in the Republic of Ireland must base dismissals on a legitimate, objectively justifiable reason and follow a fair procedure. Even where valid grounds exist, a dismissal can still be deemed unfair if the employer fails to act reasonably or to give the employee an opportunity to respond. In such cases, the dismissal can be challenged as unfair before the Workplace Relations Commission (WRC).
The Unfair Dismissals Act 1977 protects employees with at least 12 months of continuous service (some exceptions apply, such as dismissals linked to pregnancy or trade union membership, which are automatically unfair regardless of service length).
In the Republic of Ireland, dismissal law centres on two principles: reason and fairness. Employers must be able to show not only why an employee was dismissed but also how the decision was reached. A fair process is the strongest protection against future legal claims.
Statutory fair grounds
The law recognises a set of commonly accepted fair reasons for dismissal:
1) Capability, competence or qualifications
Where an employee cannot perform the job to a required standard despite training and support and in some cases reasonable adjustment (for people with disability/ medical condition). Employers should document performance management steps, warnings and opportunities to improve.
2) Conduct (including gross misconduct)
Where behaviour such as dishonesty, serious insubordination, assault, or other breaches of trust justify dismissal. Summary dismissal may be lawful for proven gross misconduct, but the employer must still follow a fair investigatory process.
3) Redundancy
Where the role itself ceases to exist because of business restructuring, closure, reduced need for work, or relocation. Redundancy must be genuine and the process fair; eligible employees may receive a statutory redundancy payment.
4) Contravention of a statutory requirement
When continuing to employ someone would breach a legal obligation (for example, loss of a required professional licence or work authorisation). Employers should verify the facts and consider alternatives before dismissing.
5) Other substantial grounds
A catch-all that covers circumstances not falling neatly into the above categories (for example, a serious breakdown in trust and confidence or client-imposed removal). This reason is fact-sensitive and requires careful documentary evidence.
Statutory and Contractual Notice Periods
| Employee’s Length of Service | Minimum Notice Period |
|---|---|
| Less than 13 weeks | No notice required |
| 13 weeks to 2 years | 1 week |
| 2 to 5 years | 2 weeks |
| 5 to 10 years | 4 weeks |
| 10 to 15 years | 6 weeks |
| 15 years or more | 8 weeks |
While these are the statutory minimums, many Irish contracts offer longer notice periods in practice. Regular employees often receive four weeks to one month, while senior staff may have three months, and executive-level roles can include three to six months’ notice.
Employees also have notice obligations. Once they have completed 13 weeks of continuous service, they must give at least one week’s notice, unless their contract specifies a longer period.
Employers may choose to end employment immediately through Pay in Lieu of Notice (PILON), but this is only allowed where the contract expressly permits it or if both parties agree at the time of termination. Garden leave is also lawful in Ireland, provided it is included in the employment contract.
Understanding these notice rules is essential, as they apply to nearly all types of termination, whether the employment ends due to redundancy, capability issues, conduct concerns, or an agreed separation.
Wrongful and Unfair Dismissal Claims
In Ireland, employees enjoy strong legal protection against unfair or wrongful dismissal. Employers must be prepared to show that a termination was both substantively justified (valid reason) and procedurally fair (proper process).
Failure to meet either requirement can result in a successful claim before the Workplace Relations Commission (WRC) or, on appeal, the Labour Court.
Irish law places equal emphasis on reason and procedure in every dismissal. Even a valid reason, such as poor performance or redundancy, can result in liability if fair procedures are not followed.
Employers who act transparently, document each step, and treat employees with dignity are best positioned to defend against claims before the WRC.
Unfair Dismissal
A dismissal is considered unfair if it occurs:
Without one of the valid reasons listed above;
Without following a fair and transparent process (e.g. warnings, hearings, right of reply); or
For reasons that are automatically unfair under Irish law.
Employers bear the burden of proof in unfair dismissal cases, meaning they must demonstrate both a valid reason and procedural fairness.
Automatic unfair dismissal (no qualifying period)
Certain dismissals are automatically unfair and can be brought up as an unfair dismissal claim without meeting the usual service qualifying period. These include dismissals related to pregnancy, maternity leave, trade union membership or activities, protected disclosures (whistleblowing), asserting statutory employment rights, jury service and a number of other protected grounds. Employers must take particular care to avoid acting for any of these impermissible reasons.
Who can claim and qualifying period
Generally, employees need 12 months’ continuous service to bring a standard unfair dismissal claim, though the automatically unfair categories are exceptions to that rule. The employer carries the burden of proof to show a dismissal was fair and procedurally correct.
Procedural fairness
Even where a substantive ground is valid, every dismissal should be preceded by a fair and documented process, which typically includes:
Notifying the employee of the issues in writing;
Giving the employee a chance to respond and be accompanied at meetings;
Conducting a reasonable investigation (for misconduct); and
Allowing an appeal before finalising the decision.
Failure to follow these steps can turn an otherwise lawful dismissal into an unfair one under the WRC’s scrutiny.
Filing a Claim
Employees who believe they’ve been unfairly dismissed can lodge a complaint with the Workplace Relations Commission (WRC) within six months of the termination date (extendable to twelve months for reasonable cause).
The process typically involves:
- Filing a complaint via the WRC’s online portal;
- Mediation, where both parties can attempt to resolve the issue informally;
- Adjudication, if mediation fails, where an adjudicator reviews evidence, witness statements, and documentation before issuing a binding decision.
Either party may appeal the outcome to the Labour Court within 42 days of the decision.
Failure to comply can expose the employer to financial penalties and reputational risk, even if the dismissal itself was lawful.
Remedies for Unfair Dismissal
If a dismissal is found to be unfair, the Workplace Relations Commission (WRC) or Labour Court may order one of the following remedies:
- Reinstatement (the employee returns as if never dismissed);
- Re-engagement (the employee is re-employed, possibly in a new role); or
- Compensation, up to two years’ gross remuneration, depending on the circumstances. And up to five years gross in case of Protected disclosure/Whistleblowing (Protected Disclosures Act 2014–2022)
Preventing Claims
To minimise exposure to disputes, employers should:
- Maintain written records of disciplinary and performance actions;
- Follow consistent procedures for all employees;
- Provide clear notice and written reasons for dismissal; and
- Keep documentation of all communications and meetings related to termination.
Redundancy and Collective Dismissal Procedures
Redundancy is one of the most common and tightly regulated grounds for termination in the Republic of Ireland. It arises when an employee’s position becomes no longer necessary, not because of performance or conduct, but due to business, structural, or financial changes.
Irish law distinguishes between individual redundancy and collective redundancy, each with its own procedural and notification requirements.
1. Individual Redundancy
- The employer has ceased, or intends to cease, the business or a specific type of work;
- The role is no longer required due to organisational restructuring or automation;
- The same amount of work can be done by fewer people; or
- The employee’s work has been relocated and they do not wish or are unable to move.
To qualify as a redundancy payment, the employee must have at least two years (104 weeks) of continuous service.
Statutory redundancy entitlement:
- Two weeks’ pay for every year of continuous service, plus one additional week’s pay;
- A week’s pay is capped at €600 (as of 2025);
- The payment is tax-free up to certain limits defined by the Revenue Commissioners.
Employers may also offer enhanced redundancy packages by contract or custom, but statutory entitlements are the minimum legal standard.
Fair Process for Individual Redundancy
Even in cases of genuine redundancy, the employer must follow a fair and transparent process, including:
Delays in salary settlement can result in MOM penalties and possible claims under the Employment Claims Act.
- Providing written notice of redundancy and the reasons behind it;
- Following fair and objective selection process for redundancy
- Offering the employee an opportunity to discuss alternatives such as redeployment or reduced hours;
- Giving the appropriate notice period under the Minimum Notice and Terms of Employment Acts; and
- Paying all outstanding wages, holiday pay, and redundancy entitlements
2. Collective Redundancy
A collective redundancy occurs when a large number of employees are let go within a 30-day period, depending on the size of the organisation.
Under the Protection of Employment Act 1977, the following thresholds apply:
| Company Size | Number of Employees Redundant (within 30 days) |
|---|---|
| 20–49 employees | At least 5 redundancies |
| 50–99 employees | At least 10 redundancies |
| 100–299 employees | At least 10% of the workforce |
| 300+ employees | At least 30 redundancies |
Consultation and Notification
Before implementing collective redundancies, the employer must:
- Consult employee representatives or trade unions at least 30 days before the first dismissal takes effect;
- Provide full written details of the reasons, number and categories of employees affected, selection criteria, and timeline; and
- Notify the Minister for Enterprise, Trade and Employment (via the Department of Enterprise, Trade and Employment) at least 30 days before the first dismissal takes effect by submitting the official CRN1 notification form.
Employers must not implement collective redundancies until at least 30 days after the Minister receives the notice. Failure to notify or implement redundancies before the expiry of the consultation/notification period can render the dismissals void and may attract criminal sanctions or fines (the legislation provides for serious penalties).
Selection Criteria
If not based on voluntary redundancy, the employer must use objective and non-discriminatory selection criteria, such as skills, qualifications, or performance records, and apply them consistently.
Selection methods like “last in, first out” are common but not mandatory, provided the process remains fair and transparent.
3. Employee Protections
Employees selected for redundancy are entitled to:
Full redundancy payments (if eligible);
Payment for unused annual leave;
Outstanding salary and benefits; and
Notice pay, unless they are paid in lieu.
Dismissals motivated by discrimination or retaliation remain unfair even when labelled as redundancy.
Termination for Misconduct or Poor Performance
Dismissal for misconduct or poor performance is one of the most sensitive areas of Irish employment law.
Termination for misconduct or poor performance in Ireland hinges on process over speed.
Employers who act hastily or fail to document their steps risk successful unfair dismissal claims.
While employers have the right to take disciplinary action, the process must be procedurally fair, meaning the employee is given a chance to respond before any final decision is made.
Even where the misconduct is serious, skipping due process can make a dismissal unfair under the Unfair Dismissals Acts.
Following a transparent, step-by-step disciplinary process, supported by written evidence, remains the most effective way to ensure compliance.
Misconduct vs Gross Misconduct
Misconduct refers to breaches of company rules or expected standards of behaviour, such as persistent lateness, unapproved absences, or failure to follow procedures. Usually, this warrants warnings or performance improvement steps rather than immediate dismissal.
Gross misconduct, on the other hand, involves acts so serious that they destroy the employment relationship, for example, theft, fraud, assault, harassment, or deliberate damage to company property. In such cases, the employer may proceed with summary dismissal (termination without notice or pay in lieu), but only after following a fair investigation and hearing process.
Fair Disciplinary Process
Under the WRC Code of Practice, disciplinary action, including dismissal, must follow clear and consistent steps. A fair process typically includes:
1. Investigation:
Conduct an impartial fact-finding inquiry to determine what happened. The employee should be informed of the allegations and given access to any relevant evidence.
2. Notification of Charges:
Provide written details of the alleged misconduct, possible consequences, and the date of the disciplinary meeting.
3. Hearing:
Allow the employee to explain their side, present evidence, and be accompanied by a colleague or trade union representative if desired.
4. Decision:
The decision-maker should consider all evidence objectively before determining the outcome. Where dismissal is being considered, the reasons should be clearly documented.
5. Right to Appeal:
The employee must be informed of their right to appeal, typically to a manager not previously involved in the case.
Dismissal for Poor Performance
For capability-related dismissals, employers must show that:
- The employee was informed of performance concerns;
- Support, feedback, and reasonable time to improve were provided (usually via a Performance Improvement Plan (PIP));
- Formal warnings were issued where improvement was insufficient; and
- Termination was only considered after all alternatives were exhausted.
Performance dismissals are rarely upheld unless the employer can show a well-documented, fair process leading up to termination.
Common Employer Pitfalls
Irish tribunals frequently rule dismissals unfair when employers:
- Fail to conduct a proper investigation;
- Combine the roles of investigator and decision-maker;
- Skip written warnings;
- Fail to offer an appeal; or
- Terminate immediately without sufficient justification.
Even if the misconduct is proven, these procedural missteps can make the dismissal legally defective.
Resignation, Retirement, and Contract Expiry
Not all employment relationships in Ireland end through dismissal. Some end naturally through resignation, retirement, or expiry of a fixed-term contract.
Whether an employee leaves voluntarily or through natural contract expiry, employers must still ensure compliance with notice, documentation, and anti-discrimination laws.
Handled properly, these types of separations are low-risk, but if mismanaged, they can lead to constructive or discriminatory dismissal claims before the WRC.
Resignation
The statutory minimum is one week’s notice, unless the contract specifies a longer period.
If an employee leaves without proper notice, the employer may deduct pay in lieu, provided this is outlined in the contract.
Employers should always acknowledge the resignation in writing, confirm the last working day, and ensure the employee receives all due entitlements such as final pay, accrued annual leave, and benefits up to the date of departure.
Where an employee resigns suddenly, the employer must handle the situation reasonably to avoid claims of constructive dismissal, where an employee argues that they were forced to resign due to the employer’s behaviour.
Retirement
There is no general compulsory retirement age in the Republic of Ireland unless one is explicitly stated in the employment contract and objectively justified, such as for safety or succession planning reasons.
Employers who wish to enforce a contractual retirement age must:
- Clearly communicate the retirement policy in advance (but being aware The Employment (Restriction of Certain Mandatory Retirement Ages) Bill 2024 and the Employment (Contractual Retirement Ages) Bill 2025 introduce a consent-based model: Employees can refuse to retire at a contractual age below the State Pension age (currently 66).Employers cannot enforce retirement below 66 without employee consent, unless they can objectively justify the age);
- Provide reasonable notice of the intended retirement date; and
-
Ensure that the policy aligns with the Employment Equality Act 1998, which prohibit age discrimination.
In recent years, the WRC has emphasised that employers should offer employees the option to discuss extended working beyond the contractual retirement age. Automatic termination based solely on age, without fair consideration, may be deemed discriminatory.
Expiry of Fixed-Term or Specific-Purpose Contracts
A fixed-term contract ends automatically when it reaches its expiry date or the specified project concludes.
However, Irish law requires that such contracts are genuine and not used repeatedly to avoid granting employees permanent status.
- An employee continuously employed on fixed-term contracts for more than four years may be deemed permanent, unless the employer can objectively justify the continued use of fixed-term arrangements.
- The non-renewal of a fixed-term contract can, in some cases, be considered a dismissal, particularly if the employer’s reason for non-renewal is unfair or discriminatory.
Employers should ensure that contract expiry notices are clear, issued in advance, and accompanied by payment of all outstanding entitlements.
Documentation and Exit Process
When employment ends, whether through resignation, retirement, or contract expiry, the employer should:
- Provide a written confirmation of termination;
- Settle final salary, holiday pay, benefits and any other statutory or contractual entitlements;
- Issue a final payroll record or its digital successor for tax purposes; and
- Retain employment records for the statutory minimum period required by the Organisation of Working Time Act 1997 and related regulations.
A transparent and respectful exit process not only fulfils legal obligations but also helps maintain good professional relationships and reduce reputational risk.
Severance Pay, Final Settlements, and Tax Treatment
When employment ends in the Republic of Ireland, employers must ensure that all statutory and contractual payments are accurately calculated and paid promptly.
Employers should clearly distinguish between redundancy pay, notice pay, and other ex gratia sums, ensuring compliance with both employment and tax laws.
While redundancy pay is only required in specific cases, every employee regardless of the reason for departure is entitled to receive their final wages and accrued entitlements.
Clear documentation and proper Revenue reporting protect employers from future disputes and penalties.
Redundancy and Severance Pay
An employee is entitled to a statutory redundancy payment if they have at least two years (104 weeks) of continuous service and are made redundant through no fault of their own.
Under the Redundancy Payments Act 1967, the payment is calculated as:
Two weeks’ pay for each year of service, plus
One additional week’s pay.
A week’s pay is currently capped at €600 (as of 2025), and redundancy payments are tax-free up to this statutory amount.
Employers may offer enhanced (ex gratia) packages, which are common in restructuring exercises, but the €600 cap applies to the statutory entitlement.
Final Wages and Accrued Entitlements
Upon termination, whether by resignation, dismissal, or redundancy, employees must receive:
All outstanding salary and overtime up to the final working day;
Accrued but unused annual leave (paid in lieu if not taken);
Any contractual benefits or commissions due; and
Pay in lieu of notice, where applicable.
Final payments (salary, holiday pay, redundancy) should be made on the last day of employment or by the employee’s next normal payday. Employers should confirm this in writing to avoid disputes.
Tax Clearance and Revenue Reporting
When processing termination payments, employers must:
- Correctly classify each payment type for PAYE purposes (salary, holiday pay, or ex gratia compensation);
- Apply appropriate tax exemptions or limits on redundancy and ex gratia sums; and
- File final payroll submissions through Revenue’s PAYE Modernisation system to close out the employee record.
Revenue may review redundancy or ex gratia payments to confirm eligibility for exemptions, especially where multiple payments are made over time.
Settlements and Release Agreements
Employers sometimes offer a settlement agreement (also known as a “severance agreement”) to formalise termination terms and prevent future disputes.
To avoid future claims about the validity of the settlement agreement, the employee must receive independent legal advice, and the agreement must clearly specify:
- The payments being made;
- The rights being waived; and
- A reasonable period for review and acceptance.
While not mandatory, these agreements are often used in senior-level terminations or where there is potential for an unfair dismissal claim.
How Beyond Borders HR Can Help
Managing employee terminations in Ireland requires a careful balance between compliance, fairness, and empathy.
Irish employment law sets out detailed rules on redundancy, notice, fair procedures, and dispute resolution, and even minor errors in process or documentation can expose companies to legal and reputational risk.
At Beyond Borders HR, we help international employers handle complex termination scenarios with clarity and compliance.
Our team provides practical, end-to-end support across:
Employment law compliance, ensuring dismissal procedures meet Irish statutory and WRC requirements.
Case-specific guidance on redundancy, capability-based dismissal, and fixed-term contract expiry.
Documentation support, including notice letters, settlement agreements, and redundancy calculations.
Cross-border coordination, for global workforces where Irish employment contracts interact with international HR policies.
We don’t just interpret the law, we help you apply it confidently in real-world business situations.
Whether you’re restructuring, managing performance, or closing an employment relationship, our goal is to ensure every step is lawful, respectful, and well-documented.
If your organisation needs tailored guidance on employee termination in Ireland or across multiple jurisdictions, get in touch with Beyond Borders HR, your trusted partner for global employment compliance.
Need help handling Republic of Ireland dismissals with confidence? Chat to Beyond Borders HR for expert guidance.
