Redundancy is where an employee’s position ceases to exist and the employee is not replaced. Any employee aged 16 or over with 104 weeks’ continuous service with an employer is entitled to a statutory redundancy payment in this situation.
The statutory redundancy payment is two week’s gross pay per year of service up to a ceiling of €600 per week plus one week’s pay, which is also subject to the ceiling of €600. This payment is tax-free.
Both employees and employers are obliged to give notice in the case of termination of employment.
Employees who have been in continuous employment for at least 13 weeks are obliged to provide their employer with one week’s notice of termination of employment. If a greater amount of notice is specified in the employee’s contract of employment, then this notice must be given.
Employers must give employees notice dependent on length of the employee’s service.
|Length of Service||Minimum Notice|
|Thirteen weeks to two years||One Week|
|Two to five years||Two Weeks|
|Five to ten years||Four Weeks|
|Ten to fifteen years||Six Weeks|
|More than fifteen years||Eight Weeks|
If the employer does not require the employee to work out any part of their notice, the employer is obliged to pay the employee for that period.
For further information download - Guide to Labour Law.
Follow the link to the relevant legislation; Minimum Notice and Terms of Employment Act, 1973.
Failure to pay a redundancy lump sum
While employers are obliged to make redundancy payments in accordance with the statutory requirements laid down under the Redundancy Payments Acts, a situation may arise where the employer is unable to pay the employees their entitlements. In such instances the Department of Enterprise, Trade and Employment will pay the full amount direct to the employees from the Social Insurance Fund (S.I.F.). Before such a claim can be processed all relevant financial information showing the inability of the employer to pay the statutory redundancy must be forwarded to the Department.
The laws on redundancy are set out in the following links:
Redundancy Payments Acts 1967–2014
Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act, 2007
If you are applying for payment from the Social Insurance Fund, contact:
Redundancy Payments Section
Department of Social Protection
Contact Us - Contact us for a free initial consultation to find out how we can help.