COVID-19 Related Lay-Off Payment Scheme

The COVID-19 Related Lay-Off Payment Scheme is a once off, lump sum payment for employees who:

• have been made redundant since 13 March 2020, or are made redundant before 31 January 2025

and

• have lost the opportunity to build reckonable service due to temporary lay-offs caused by the COVID-19 restrictions from 13 March 2020 to 31 January 2022

To qualify for this scheme, you must be entitled to a redundancy payment under existing rules, meaning:

• you have 104 weeks' continuous employment
• your employment is fully insurable under the Social Welfare Act
• your job no longer exists
• you are over the age of 16

You must also:

• be entitled to a redundancy payment between 13 March 2020 and 31 January 2025

and

• have been temporarily laid off due to the COVID-19 restrictions during some or all of the period between 13 March 2020 and 31 January 2022

Information about the tax treatment of payments under the Scheme can be found on the Revenue website.

The amount you will get will depend on the length of time you were placed on temporary lay-off due to COVID-19 before the date you are made redundant.

The calculation for the payment is based on existing redundancy rules:

• Calculate the total number of days you were temporarily laid-off due to COVID-19 restrictions between 13 March 2020 and 31 January 2022
• Divide this number by 365 to get the total lay-off period in years
• Multiply this number by 2 to calculate the number of weeks due
• Multiply the number of weeks due by your normal gross weekly wage to calculate the estimated payment due

A maximum of €600 is applied to your normal gross weekly wage.

A bonus week is not included in this scheme.

Example 1: Estimated payment calculation using the maximum values

Saoirse works as a head bartender in a pub. She was placed on lay-off for the entire qualifying period from 13 March 2020 to 31 January 2022. She is then made redundant from this job before 31 January 2025.

• Total lay-off period due to COVID-19 = 690 days (13 March 2020 to 31 January 2022)
• Total lay-off period in years = 1.89 (690 days divided by 365)
• Number of weeks due = 3.78 (1.89 years multiplied by 2)
• Normal gross weekly wage = €800. Max per week is €600
• Estimated payment due = €2,268 (€600 multiplied by 3.78)

Example 2: Estimated payment calculation using multiple periods of lay-off

Jakub works as a receptionist in a hotel. He was placed on lay-off from 13 March 2020 to 31 August 2020 (172 days). He returned from lay-off in September 2020. He was placed on lay-off again on 1 January 2021 until 31 March 2021 (90 days). He is then made redundant from this job before 31 January 2025.

• Total lay-off period due to COVID-19 = 262 days (172 plus 90 days)
• Total lay-off period in years = 0.72 (262 days divided by 365)
• Number of weeks due = 1.44 (0.72 years multiplied by 2)
• Normal gross weekly wage = €450
• Estimated payment due = €648 (€450 multiplied by 1.44)

Your employer should apply for this payment on your behalf first.

Employers and employer representatives can apply online at Welfare Partners.

To access this service, employers will require a DSP Sub-Cert which is issued by Revenue. See information on how to apply for a DSP Sub-Cert.

• An Employer and Employer Representative guide using Welfare Partners

If your employer fails to apply for this payment on your behalf, you should contact the Redundancy and Insolvency Unit.

Intreo (the Public Employment Service) is a single point of contact for all employment and income supports and services.

If you have any questions, please use the contact details below (option 4). If you are sending an email, please include as much information as possible so we can help you.

Click here for an overview and further information about redundancy and insolvency.