Poist pholasaí
Redundancy
Ó An Roinn Fiontar, Trádála agus Fostaíochta
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
Ó An Roinn Fiontar, Trádála agus Fostaíochta
Foilsithe
An t-eolas is déanaí
Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
The Redundancy Payments Act 1967, as amended, sets out the obligations and rights of employers and employees in situations where an employee is made redundant.
A redundancy situation can arise for a number of reasons, such as the employer has ceased trading or the employer has decided to carry on the business with fewer staff. It is the employer’s legal responsibility to make statutory redundancy payments to eligible employees.
An employer who proposes to dismiss an employee by reason of redundancy must give that employee notice of the redundancy at least 2 weeks before the date of dismissal. Employees may also be entitled to longer periods of notice under the Minimum Notice and Terms of Employment Act 1973, depending on their length of service.
The Act prescribes the minimum redundancy lump sum for eligible employees, generally referred to as 'statutory redundancy'.
An eligible employee is entitled to two weeks normal weekly remuneration for every year of service, plus a bonus week. The redundancy lump sum calculation is based on the worker’s length of reckonable service and weekly remuneration, which is subject to a ceiling of €600 per week.
For an employee to be eligible for a statutory redundancy payment, the following must apply:
In situations where an employer is genuinely unable to pay statutory redundancy entitlements due to financial difficulties or insolvency the State provides a safety net for employees to ensure they receive their statutory entitlements. An application for payment under the Redundancy Payments Scheme may be submitted to the Department of Social Protection. When such a redundancy payment is made from the Social Insurance Fund, a debt is raised against the employer.
For more information, visit Redundancy Payments Scheme (gov.ie).
The redundancy calculator on MyWelfare.ie can be used to estimate redundancy entitlements.
For more information, visit redundancy calculator.
In the event of a dispute between the employer and employee in relation to redundancy, the employee’s recourse is to refer a complaint to the Workplace Relations Commission for a determination by an adjudication officer.
A redundancy arises where an employee loses their job due to circumstances such as the closure of the business or a reduction in the number of staff. Collective redundancies are situations where, during any period of 30 consecutive days, the number of redundancies is:
The Protection of Employment Act 1977 imposes a number of obligations on an employer that proposes a collective redundancy. This includes undertaking a 30-day information and consultation process with the employees’ representatives, and notifying the Minister for Enterprise, Trade and Employment of the proposed redundancies at least 30 days before they take effect.
Further information on employment rights and employer obligations in the event of a collective redundancy:
The WRC is the organisation mandated to secure compliance with employment rights legislation.
While this handbook has been written primarily for employees, it may also be of relevance to employers looking to understand their obligations.