Termination of employment in Ireland

Overview of termination rules

In Ireland, ending an employment relationship is governed by strict rules to protect both employers and employees. The process must be fair, reasonable, and follow proper procedures as outlined in national legislation and workplace guidelines.

Fair and unfair dismissal

Termination of employment is considered fair only if based on specific valid grounds and after following thorough procedures.

• Capability, competence, or qualifications of the employee
• Conduct or behavior at work
• Redundancy (genuine business need)
• Legal requirements (continued employment would break the law)
• Substantial business reason (clearly demonstrated need)

Certain dismissals are always unfair. These include:

• Trade union membership or activities
• Discrimination due to religion, race, sexual orientation, age, or Traveller status
• Cases linked to pregnancy, birth, or being on any statutory leave (maternity, parental, adoptive, paternity, force majeure, carer’s)
• Being a witness or party in legal action against the employer
• Protected disclosures (whistleblowing)
• Unfair selection for redundancy
• Dismissals connected to business transfers under TUPE regulations

Employee protections under Irish law

The Unfair Dismissals Acts cover most employees who have worked with their employer for at least 12 months. Protections apply even when employees are on probation if the service requirement is met. If dismissed, employees may request a written statement of dismissal reasons; employers must provide it within 14 days.

Procedures for dismissal

Employers must follow fair and reasonable disciplinary and termination procedures. The Code of Practice on Grievance and Disciplinary Procedures, issued by the Workplace Relations Commission, sets out good practice, including:

• Giving the employee clear details of the allegation or concern
• Allowing time to prepare and respond
• The right to be represented during meetings
• Ensuring an impartial investigation and decision
• Documenting all stages and maintaining records

A progressive process is usually followed for misconduct or performance issues:

• Oral warning
• Written warning
• Final written warning
• Possible suspension without pay
• Dismissal as a last resort

For gross misconduct (serious breaches like theft, violence, or serious harassment), summary dismissal without notice can occur. Examples of gross misconduct should be defined in workplace policies or contracts. In some cases, suspension with full pay is used while investigations are ongoing.

Notice periods

Both employee resignations and employer-initiated terminations generally require advance notice. The minimum statutory notice periods for employers depend on the employee’s length of service:

Length of service	Minimum notice
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
More than 15 years	8 weeks

An employee usually provides at least one week's notice, but contracts may set longer periods. Payment instead of working the notice (pay in lieu of notice) is common if agreed between both parties.

Final payments and employer obligations

Upon termination, the employer must include the employee’s final pay, outstanding holiday pay, and any other owed amounts in the last payroll. The final payroll submission to the Revenue Commissioners must state the leaving date to update the employee’s tax and benefit records.

• Provide a final payslip
• Inform about any workplace pension or benefits changes
• Remove disciplinary warnings from the record after designated periods
• Issue necessary documentation for social welfare if requested

Redundancy entitlements

An employee is entitled to a statutory redundancy payment if they have at least two years of continuous service and the redundancy is genuine. The minimum redundancy payment is:

• Two weeks' pay for each year of service
• One additional week’s pay

There is a statutory maximum of €600 per week used to calculate these payments. Redundancy payments under the statutory scheme are tax-free. Employers and employees may agree to higher or earlier redundancy payments if desired.

Severance payments

Irish law does not mandate severance payments outside of redundancy. However, employment contracts can set terms for severance or ex gratia payments (discretionary sums on termination). These often require the employee to waive legal claims against the employer.

What reasons are automatically considered unfair for dismissal in Ireland?

Dismissals for reasons connected to discrimination, trade union activity, pregnancy, statutory leave, whistleblowing, or certain legal actions are always deemed unfair under Irish law.

How much notice must an employer give when ending employment?

Notice periods depend on length of service, ranging from one week (for employees with up to 2 years of service) to eight weeks (for those with over 15 years).

Are employees entitled to redundancy pay?

Yes, if they have at least two years of continuous service and the redundancy is genuine. The standard payment is two weeks' salary per year of service, plus one bonus week, limited to €600 per week.

Do employers have to pay severance on dismissal?

There is no general legal requirement for severance, except where redundancy applies or where it is provided for in the employment contract.

What procedures must employers follow for disciplinary or dismissal actions?

Employers should follow fair and transparent disciplinary processes, give the employee the chance to respond, allow representation, and ensure a fair and documented investigation before any dismissal.