# Redundancy and fixed term contract



## bubble105 (14 Aug 2009)

Hello,
There are a few posts about fixed term contract and redundancy, but none answers my question. I have been working on a fixed-term contract for more than 104 weeks. It won't be renewed. I have been told I won't be entitled to statutory redundancy as my employer's policy is to pay redundancy if employee has more than 104 weeks service AND contract has been renewed at least once. Mine has not. Do you reckon it is ok for them to do so?


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## sistinas (16 Aug 2009)

how long was your contract for? If you signed aone contract for 105 weeks+ then you wont get a thing. if you were hired on a 52 week contract which was renewed twice then you are entitled. The idea being that employees cant continue to offer successive fixed term contracts to workers in order to reduce their obligations to them re redundancy etc.


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## bubble105 (17 Aug 2009)

It was a 3 year contract. I'm not sure to understand the logic. The Act only mentions the 104 + weeks of employment, it never stress on contract renewal... Because renewed or not, I have the required amount of weeks and next month I will be out of work...


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## sistinas (18 Aug 2009)

The logic is this - employers would be able to avoid ever paying workers redundancy by hiring employees on 12 month contracts, then renewing their contract every year and never having them on the books as full time. 

Your situation is different because you were given one 3 year contract upfront. Your employer hasn't tried to string you along on successive contracts to avoid making you full time.  You should talk to the Citizens Information folks for your own peace of mind, but my view is that you won't be entitled to anything.


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## bubble105 (18 Aug 2009)

Ok, thanks a lot for your answer. I will see if there is any chance I can get something...


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## glong (18 Aug 2009)

Hi all

if you have 104 weeks' service or more with your employer under a fixed-term contract, and this contract expires without being renewed, you are in a redundancy situation and you should be entitled to a statutory redundancy payment.

You can find more information on this on the Department of Enterprise, Trade and Employment website (see section 13): http://www.entemp.ie/employment/redundancy/faq.htm

Graham Long
Citizens Information


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## sistinas (18 Aug 2009)

good stuff, i am happy to be proved wrong in this instance!


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## bubble105 (20 Aug 2009)

Thank you both for your help. I still have to approach my employer to explain them I'm entitled to redundancy


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## mwhich (20 Nov 2009)

Hi Graham,  sorry to bring this up again but my fixed term contract is due to expire next year after 46 mths of continuous service on 1year fixed rolling contracts.  The last contract issued, whichI'm currently on, was for 10mths.  Am I entitled to a redundancy payment, when my role is going to be refilled after I leave?


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## Deas (20 Nov 2009)

What is the wording in the contact bubble.  You have said that the contract has a defined end date.  If this is correct, I'm afraid redundancy does not apply - per DETE website:

The Redundancy Payments Act 2003 safeguards the right to redundancy of a worker employed under a “fixed-purpose” contract i.e. where the exact duration of the contract was _incapable of being determined at the beginning._ If the contract is not renewed following the fulfilling of the purpose, with the fixed-purpose contract therefore ceasing, a redundancy situation can arise.

There is a difference between fixed term and fixed purpose.  You appear to be on a fixed term contract which has an end date that was determined at the beginning.  A fixed purpose contract has no end date, but has a defined end such as project completion for example.  If the project was not completed and the contract ended, this would be by way of unfair dismissal, resignation or redundancy.

Mwhich, in your case as there is more to it.  Your employer is using the Protection of Workers Fixed term Act to their advantage:
*9.*—(1) Subject to _subsection (4)_, where on or after the passing of this Act a fixed-term employee completes or has completed his or her third year of continuous employment with his or her employer or associated employer, his or her fixed-term contract may be renewed by that employer on only one occasion and any such renewal shall be for a fixed term of no longer than one year.

Basically they are keeping you for less than the 4 years; however as you have stated the reason for your employment will continue after you leave and will be filled subsequently, to me this is an unfair dismissal.  Basically the role should not be fixed term in the first place but permanent.  You should ask to be made permanent in the role or bring the dismissal to a Rights Commissioner.


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## mwhich (20 Nov 2009)

Thanks for that Deas.  Its difficult to bring a major US multinational to a Rights Commissioner.  Might just cut my losses and look for another job.  Makes me so mad though.............
Thanks again for your help.


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## hardworker1 (13 Jan 2010)

Hi,
On this topic, my wife started in a company 11 months ago on probation for six months with a review to being made permenant and then that was extended by 1 month, she never went back to ask if they were making her permenant or not, and she will be there 12 months next month, does she have any rights regarding being laid off, they have aslo nevr given her a pay slip or a contact to sign.


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## WaterSprite (13 Jan 2010)

hardworker1 said:


> Hi,
> On this topic, my wife started in a company 11 months ago on probation for six months with a review to being made permenant and then that was extended by 1 month, she never went back to ask if they were making her permenant or not, and she will be there 12 months next month, does she have any rights regarding being laid off, they have aslo nevr given her a pay slip or a contact to sign.



You are only entitled to statutory redundancy after 2 years of service.  If she is unfairly selected for redundancy, however, she could take an Unfair Dismissals claim as you only need one year of service to qualify under the UDA.


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## twofoot (14 Jan 2010)

Wrong Forum


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## mwhich (19 Jan 2010)

hey folks, I'm back again with another query.  I've established that when my fixed term contract expires early this year, I will be entitiled to redundancy as my position is not going to be refilled and I'm with the company nearly 4 years.  I'm desperately looking for another job at the moment and my question is as follows; do I need to work out my contract completely to be entitled to receive redundancy. If I leave a month early because I got a new job, does that discount me?
Thanks very much


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## Deas (21 Jan 2010)

Have you established this with the company or are you going on what advice you have received here?

If with the company, if you leave before you receive redundancy without agreement from the employer you will be deemed as having resigned for which redundancy does not apply.

Given your situation, do you have annual leave built up which will bring you to your end date or will the company put you on garden leave pending your end date?


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## mwhich (21 Jan 2010)

Hi Deas, I have a friend who has a contact in IBEC who has clarified the situation.  Basically if I am replaced, I am being unfairly dismissed in the eyes of the law and if I am not being replaced, the position is being made redundant.  I have put a query to HR asking am I entitled to redundancy and am awaiting their response.  I just don't want to be caught on the back foot just in case I am offered a position in the meantime.
Thanks very much.


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## Fourteen (24 Jan 2010)

If a 3 year fixed term contract has the phrase " Unfair Dismissals Act will not apply at end of contract", does that mean no redundancy will be paid? It's a large Nationwide company who announced early in 2009 that they were cutting 1200 jobs & are not renewing contracts because of this.


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## mwhich (16 Feb 2010)

hey folks
I'm back again.  I've requested redundancy and the company have come back giving us the bare statutory minimum.  There was a precedent set when a previous employee was made redundant and he was given 2wks per yr on top of the statutory.  We were told the precendent doesn't apply to us because we were on contract and he was permanent.  Do I have any comeback on this?
thanks


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