Collection
Redundancy and Insolvency Overview: Employee Entitlements
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
Redundancy is what happens when you lose your job because your employer is either closing the business or reducing the number of staff. A redundancy occurs where your job in the company no longer exists, you are let go and are not replaced.
You may be part of a collective redundancy if your employer is making a certain number of employees redundant during any period of 30 consecutive days.
There are rules in place that employers must follow when proposing to create a collective redundancy. Further information about the obligations on employers and what this means for employees can be found on the Department of Enterprise, Trade and Employment website.
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.
All eligible employees being made redundant are entitled to a statutory redundancy payment.
Statutory redundancy is equivalent to 2 weeks’ pay for every year of service plus 1 additional bonus week, subject to a maximum of €600 per week.
Where your employer is proposing to make you redundant, you have a right to notice. You are entitled to notice of the redundancy at least two weeks before the date of dismissal. You may also be entitled to longer periods of notice under Minimum Notice and Terms of Employment Act 1973, depending on your length of service.
To qualify for a statutory redundancy payment the following conditions must be met:
Further details can be found on the Department of Enterprise, Trade and Employment website.
Insolvency is what happens when a company can no longer pay its debts as they fall due or when it has more liabilities than assets on its balance sheet. When a company is insolvent, a person known as a liquidator is usually appointed to help wind up the company.
If your employer is insolvent, you are likely to be made redundant. You may also be owed outstanding wages or other entitlements like holiday pay.
Further information about employers’ insolvency and what this means for employees can be found on the Department of Enterprise, Trade and Employment website.
In situations where an employer is genuinely unable to pay statutory redundancy entitlements due to financial difficulties or insolvency, the Redundancy Payment Scheme provides a safety net to ensure you receive your statutory entitlements.
You can use these links to estimate your potential statutory redundancy payment:
Once a payment has been made by the department under the Redundancy Payment Scheme, a debt will be raised against the employer. Learn more about options available to an employer to repay this debt.
The COVID-19 Related Lay-Off Payment Scheme is a once off, lump sum payment made by the State to employees who:
and
The Insolvency Payments Scheme protects the former employees of companies that have become legally insolvent.
Employees may claim, through an employer representative, such as the official liquidator or receiver, various outstanding debts including:
Intreo (the Public Employment Service) is a single point of contact for all employment and income supports and services.