Unfair Dismissal in Ireland: What Employers Need to Know

Unfair dismissal claims are among the most common disputes Irish employers face, and the rules turn on service, grounds and procedure. This guide summarises the Citizens Information page on unfair dismissal, which was last edited on 28 April 2022, so some details may have changed since then. It is general information and not legal advice. For the procedures that usually come before a dismissal, see our disciplinary and grievance essentials guide.

What the law says

The page says the Unfair Dismissals Acts 1977 to 2015 do not prevent dismissal. They let employees challenge whether a dismissal was fair. Dismissal includes an employer ending the contract, and constructive dismissal, where an employee resigns because of the employer’s conduct. A dismissal for capability, conduct, or being legally unable to continue in the role is not unfair under the page. Genuine redundancy is generally fair, but unfair selection or no genuine need can make it unfair.

Automatically unfair reasons

The page lists reasons that are automatically unfair, including trade union membership or activity, religious or political opinions, taking or being a witness in legal proceedings against the employer, race, colour, sexual orientation, age or Traveller community membership, pregnancy-related matters, use of statutory leave rights, unfair selection for redundancy, and making a protected disclosure. Our guide to protected disclosures for employers covers the last of these.

Who is covered

The Acts apply to employees working under a contract of service, not a contract for services. Agency workers can generally claim against the hiring employer. The page lists a number of excluded groups, including under-16s, close relatives working in a shared private house or farm, members of the Defence Forces and Garda Siochana, full-time trainees or apprentices, certain senior public officers, fixed-term or specified-purpose employees whose written contract excludes the Acts, and employees on written probation or training of up to one year. It notes several exclusions do not apply where the dismissal relates to pregnancy, leave rights or a protected disclosure. Because the page dates from 2022, check current rules on any group that matters to you.

The 12-month service rule

Usually at least 12 months’ continuous service is needed. The page says exceptions with no service requirement apply to dismissals connected with trade union matters, pregnancy-related reasons, leave rights, national minimum wage rights and protected disclosures. For employees with under a year of service, a claim may be made under section 20(1) of the Industrial Relations Act 1969, but the recommendation is not binding. A discriminatory dismissal is a separate route.

Fair grounds and procedures

A dismissal is presumed unfair unless the employer shows substantial grounds justifying it, which does not apply to constructive dismissal. For redundancy dismissals, employers must be able to show a genuine redundancy and fair procedures. On request, an employer should provide a written statement of the reasons within 14 days. If the employer accepts it dismissed the employee, the employer must show fair grounds. If the employer disputes that a dismissal occurred, the employee must prove it.

Remedies

• Reinstatement: the employee is treated as never dismissed, with back pay for lost earnings.
• Re-engagement: the employee is rehired from a set date, with no compensation for loss of earnings, and is used where the employee contributed to the dismissal.
• Compensation: the most common remedy, capped at two years’ pay, or five years’ pay for dismissals connected with protected disclosures. There is no compensation for injury to feelings or stress.

The page says compensation takes account of current and future loss, pension loss, loss of statutory protection, and a reduction for contributory conduct. Employees must try to mitigate their loss. If there is no actual loss, a token award of four weeks’ pay applies.

Time limits and process

Complaints must be made to the Workplace Relations Commission within six months of dismissal, where the date of dismissal is when notice expires. The limit can be extended by a further six months only for reasonable cause. A WRC adjudicator holds a hearing and can compel witnesses, and decisions can be appealed to the Labour Court.

Fixed-term and specified-purpose contracts

Expiry can be excluded from the Acts only if the contract is in writing, specifies the duration or object, is signed by both parties and includes a clause excluding claims on expiry. Successive fixed-term contracts cannot run beyond four years without an open-ended contract unless objective grounds justify renewal. Re-employment within three months may be treated as continuous service, particularly where the WRC finds that contracts were used to avoid protection.

Our suggestions

These are our own practical suggestions, not Citizens Information guidance. Keep a clear file for every dismissal showing the grounds, the procedure followed and the dates. Answer a request for written reasons within 14 days. Check service and the type of contract before deciding which rules apply. Train managers on the automatically unfair reasons so that they know what not to say or do in discussions.

What the sources do not say

The page does not set out a detailed list of fair procedures or fair grounds, and does not give the Labour Court appeal deadline or WRC hearing timelines. It does not explain how the two-year pay cap is calculated and gives no penalties for failing to provide the 14-day statement. It does not reflect legislative changes after April 2022.

For the Code of Practice on grievance and disciplinary procedures, see our grievance and disciplinary Code of Practice guide.

Frequently asked questions

How much service is needed to claim unfair dismissal?

Usually 12 months, though the page lists exceptions such as dismissals connected with trade union matters, pregnancy-related reasons, leave rights, national minimum wage rights and protected disclosures.

What is the time limit for a claim?

Six months from dismissal, extendable by a further six months for reasonable cause.

What is the maximum compensation?

Two years’ pay, or five years’ pay for dismissals connected with protected disclosures, according to the page.

Does the employer have to give reasons?

On request, an employer should give a written statement of the reasons within 14 days.

Next steps

Learnsignal’s offices are off Baggot Street in Dublin, and we offer in-person training from there. For current details, see our CPD pages.