In order to qualify for a redundancy payment an employee must have worked continuously for an employer for a period of at least two years (104 weeks).
The main points to consider when seeking redundancy payments:
- You must receive a Redundancy Certificate from the company. This must be given to the employee not later than the date on which the dismissal / redundancy takes place.
- There must be legitimate reasons for Redundancy
- You must receive sufficient notice of Redundancy and the reasons why.
- Redundancy must not be based on any of the following grounds:
- Membership/Trade Union Activity
- Religious/ Politician Opinions
- Civil proceedings against the employer
- Sexual Orientation
- Membership of the traveling community
- Family Status
- Marital Status
- A lump sum redundancy payment is payable to the employee and is calculated as follows:
(a) Two weeks pay for every year of service subject to a statutory limit of €600
(b) In addition, the equivalent of one week’s normal pay subject to a statutory limit of €600
This is best illustrated by an example. Jim has been working for 4 and ½ years.
Therefore he is entitled to :
(4 years x 2 Weeks) = 8 Weeks +
(1/2 year x1 Week) = 1 Week +
1 additional week
= 10 Weeks.
Frequently Asked Questions:
Q1. My employer made me redundant but has replaced me with someone else – what should I do?
It would seem that this is not a genuine redundancy and instead a case of unfair dismissal. You should immediately contact us and we can assist you in making an application to the Rights Commissioner. All applications must be taken within 6 months, this can be extended to 12 months in exceptional circumstances.
Q2. I have not received my full statutory redundancy entitlements – what should I do?
All disputes in relation to redundancy payments should be taken to the Employment Appeals Tribunal within 6 months, but can be extended to 12 months in exceptional circumstances.
Q3. How long will it take and how much does it cost?
The length of time it takes to get a hearing date depends on whether you are making an application to the Rights Commissioner or the Employment Appeals Tribunal. Generally the Rights Commissioner will hear applications within 7 months but the Employment Appeals Tribunal can take up to 14 months. The cost starts at €900 plus VAT and again depends on the circumstances of the case and how long it is likely to take.