Redundancy

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The Redundancy Payments Acts 1967-2014 impose a statutory obligation on employers to pay compensation to employees dismissed for reasons of redundancy or laid off or kept on short-time for a minimum period 6.

Redundancy arises where the employer has ceased to carry out business, an employee’s job ceases to exist, work of a particular nature has ceased, a permanent reduction in the numbers employed has or is due to occur, reorganization, etc..

The minimum period is 4 or more consecutive weeks or for a period of 6 or more weeks which are not consecutive but which fall within a period of 13 consecutive weeks.

The Redundancy Payments Acts 1967 – 2014 provide as follows:

That an employee with 104 weeks’ continuous service, aged from 16, and whose employment is terminated because of redundancy is entitled to a redundancy lump-sum payment. Part-Time workers are included in this by virtue of the Protection of Employment (Part-Time Work) Act 2001 and the Redundancy Payments Act 2003.

The Redundancy Payments Acts 1967-2014 provide a right of complaint to the Workplace Relations Commission (WRC) where an employee believes that he/she has not received his/her entitlements under those Acts.

The statutory redundancy lump-sum entitlement is calculated as follows:

2 weeks pay for every year of service, subject to the statutory ceiling.

When that figure has been calculated, a bonus week’s gross pay, subject to the prevailing statutory ceiling, is added on to get the final statutory redundancy lump sum figure.

Redundancy Calculator

To calculate your redundancy entitlements, please visit www.welfare.ie and access the Redundancy Calculator

If you require a consultation with our Employment Law Solicitor to discuss redundancy further, please call 01 8211288

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