Redundancy in Ireland
Redundancy is a term for when someone loses their job because the role no longer exists. If this happens, the redundant party is usually entitled to compensation assuming that they have 104 weeks of continuous employment and that they are aged 16 or older. If you have been made redundant and your job is being replaced – this may be classed as an unfair dismissal. More details about redundancy in Ireland
Minimum Legal Redundancy
You will be entitled to a redundancy payment of 2 weeks pay for every year you have worked, plus 1 additional bonus week of pay. If you earn over €600 in gross weekly pay then a week in redundancy terms is considered to be worth €600 as your upper cap. This is paid as a redundancy lump sum by your employer.
Company Redundancies
Companies make employees redundant all the time. Long serving and well paid employees will typically have a larger redundancy package. Voluntary redundancy is becoming more and more common and these are generally more generous than the statutory minimum.
Redundancy Payments over the Statutory Minimum
These payments may be subject to tax, and depending on the offer your pension may be involved.
If you are receiving a redundancy greater than the statutory minimum then it is critical to get redundancy advice on the tax and pension implications of your redundancy payment.
Redundancy Agreements
Great care must be taken when agreeing to anything at the termination of employment. A full redundancy review should be conducted before you sign any paperwork – this is a free service for Irish workers and should always be used for any lump sum payment in excess of the statutory minimum payment.
Redundancy Advice Ireland
When you lose your job due to either the closure of the business or a planned reduction in staff this is known as redundancy.
This process is governed by The Redundancy Payments Act 1967 – 2014 which guarantees a minimum redundancy entitlement for employees with a set period of service with the company.
It’s important to note that not every employee is entitled to the statutory redundancy payment, even in cases where a redundancy situation exists. However, if you do qualify, there are specific procedures which both the employers and the employees must abide by to comply with the legislation.
