Introduction

Redundancy occurs where an employee’s position ceases to exist and the employee is not replaced.  Any employee aged 16 or over with 104 weeks’ continuous service with an employer is entitled to a statutory redundancy payment in this situation.

An employee who has received a ‘Notice of Proposed Dismissal for Redundancy (Form RP50 (Part A))’ may decide to leave the employment earlier than the date of redundancy notified to him/her, for example to take up an offer of alternative employment. If he/she decides to leave, there is a risk that he/she may lose any entitlement to redundancy payments unless they notify their employer in writing using Form RP6 – Leaving Before a Redundancy Expires. An employer has discretion as to whether to grant such a request or not. It should be noted that leaving during the notice period without the employer’s agreement may affect a person’s entitlement to a redundancy payment.

If you have been laid off or on short-time working for 4 weeks or more, you may give your employer notice of your intention to claim a redundancy payment on Form RP9 – Lay Off and Short-Term Procedures.

If an employer has not paid the employee his/her redundancy lump sum, he/she should apply to the employer for it using form RP77 – Claim by an Employee against an Employer for a Lump Sum or Part of a Lump Sum. If your employer still refuses to pay it, you can apply to the Department of Social Protection for direct payment from the Social Insurance Fund.

The statutory redundancy payment is two week’s gross pay per year of service up to a ceiling of €600 per week plus one week’s pay, which is also subject to the ceiling of €600.  This payment is tax-free. For information on how to calculate your entitlements please go to the redundancy calculator on the Department of Social Protection website. Some employers may make redundancy agreements above the statutory rate.

Further information

For further information please email Barry Crushell of Aperture Partners Advisory at bcrushell@aperturepartners.ie or call 01-9053503.

Please note that the material contained herein is for general information purposes only and does not constitute legal or other professional advice. Reference accurate at time of publication but subject to change.