Redundancies are among the most sensitive and high-risk decisions an organisation can make. When handled well, they protect the long-term viability of the business while treating people with dignity. When handled poorly, they can escalate rapidly — into industrial action, reputational damage, leadership fallout and long-tail employee relations issues.
A recent Irish case involving a Meta contractor brought these risks into sharp focus. Workers described the redundancy process as “bargain basement”, strike action followed, and the organisation found itself under intense public and employee scrutiny. Using this case as a launchpad, The HR Room podcast explored what really happens when redundancies go wrong – legally, culturally and operationally – with expert insights from employment law specialist Adrian Twomey. You can listen to that here.
For HR Directors, CEOs, Boards and senior leaders, the message is clear: redundancy risk is rarely just a legal issue.
Redundancy Is a Legal Process — But It’s Experienced as a Human Crisis
From a statutory perspective, collective redundancies in Ireland are governed by long-standing legislation, including requirements to notify the Minister, engage in meaningful consultation, and provide detailed written information to employee representatives.
But legal compliance alone does not equal a successful outcome.
As discussed on the podcast, even a technically “correct” process can unravel if employees experience it as rushed, transactional or dismissive. Once people hear the word redundancy, the emotional response is immediate: fear, anger, shock, and anxiety about livelihoods, families and future employability.
This is where many organisations misjudge risk.
Redundancy is not perceived internally as a neutral business decision. It is experienced as:
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A loss of security
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A breach of trust
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A signal about how the organisation treats people when things get difficult
And those perceptions drive behaviour — including escalation to unions, media, legal claims, or strike action.
Why “Statutory Only” Can Become a Flashpoint
One of the most contentious elements in any redundancy process is pay. While statutory redundancy was originally designed to “tide people over” between roles, it has not kept pace with:
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Cost of living pressures
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Modern mortgage and rental realities
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Expectations in highly profitable or global organisations
In the case discussed, the employer’s decision to offer statutory redundancy only, with no enhanced package and no provision for certain groups of workers, became the lightning rod for wider dissatisfaction.
From an employer perspective, statutory redundancy is not intended as a windfall. But from an employee perspective, especially in high-profile or profitable sectors, it can feel deeply misaligned with organisational reality.
This disconnect is where many processes derail — particularly when:
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There is little explanation of why enhancement is not possible
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Communication lacks empathy or context
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Decisions are presented as final rather than consultative
Consultation: Where Most Redundancy Processes Succeed or Fail
Irish employment law places significant emphasis on consultation — but consultation is often misunderstood.
Done well, consultation is:
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Transparent
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Structured
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Time-bound
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Focused on mitigation, alternatives and fairness
Done badly, it becomes:
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A box-ticking exercise
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A source of false hope
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A breeding ground for anger and mistrust
One recurring challenge highlighted in the discussion is that employees often expect consultation to change outcomes, while employers may see it as procedural. When that expectation gap isn’t managed, frustration escalates quickly.
Another common pitfall is underestimating the role of line managers. Managers are often required to deliver life-changing news with little preparation, training or emotional support — leading to cold, overly scripted communication that damages trust further.
The Real Risks Aren’t Legal — They’re Reputational and Cultural
Interestingly, from a strictly legal perspective, the risks of collective redundancy breaches are often limited. Prosecutions are rare, compensation caps are low, and recent case law has raised the bar for employee claims.
But the non-legal risks are far more significant:
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Industrial action and disruption
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Adverse media coverage
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Long-term employer brand damage
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Loss of key talent who were not made redundant
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Cultural erosion and disengagement among “survivors”
For organisations already struggling with attraction and retention, a poorly handled redundancy can undo years of employer brand investment in weeks.
The Overlooked Group: The “Survivors”
One of the most consistent blind spots in redundancy planning is what happens after the process ends.
Once redundancies conclude, leadership teams often feel relief and move quickly back to “business as usual”. Employees don’t.
Those who remain often experience:
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Guilt for keeping their roles
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Fear of future rounds
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Increased workload
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Reduced trust in leadership
Without a deliberate post-redundancy recovery strategy — communication, reassurance, workload redesign, and leadership visibility — morale can continue to deteriorate long after the legal process ends.
The Single Most Important Lesson: Empathy Is a Risk Control Tool
Perhaps the most powerful takeaway from the discussion was this: empathy is not a “soft” skill in redundancies — it is a risk mitigation strategy.
Employees don’t expect redundancies to feel good. But they do expect:
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Honesty
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Respect
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Time
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A sense that their concerns were genuinely heard
Processes that demonstrate empathy — even when outcomes are difficult — consistently result in:
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Fewer disputes
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Lower escalation
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Better long-term organisational recovery
Those that don’t often spiral into conflict, reputational harm and prolonged internal damage.
Redundancy Is Change Management — Treat It That Way
At Insight HR, we see redundancies not as a one-off legal exercise, but as a complex change programme involving:
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Legal compliance
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Industrial relations strategy
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Manager capability
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Employee communication
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Cultural repair
Organisations that recognise this early are far better positioned to protect their people, their reputation, and their future.
Need Support Navigating Redundancy Risk?
If your organisation is facing:
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Collective or individual redundancies
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Industrial relations pressure
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WRC or unfair dismissal exposure
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Leadership or manager capability gaps
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Post-redundancy morale and culture challenges
Insight HR supports Irish employers through strategic, legally informed, and human-centred redundancy management, including consultation support, manager training, investigations, mediation, and post-change recovery.
A confidential conversation early can prevent a crisis later.
Read more about our redundancy support services here.
