Redundancy

Redundancy

Redundancy occurs where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff.

Not all employees are entitled to this statutory redundancy payment, even where a redundancy situation exists.

Redundancy criteria:

· An employee over the age of 16
· with 104 weeks (two years) continuous service
· You must be in employment that is insurable under the Social Welfare Acts. If you are a full-time employee you must be in employment that is fully insurable for all benefits under the Social Welfare Acts; this does not apply if you are a part time employee.

How do I calculate redundancy?
Two weeks pay for each year of employment continuous and reckonable over the age of 16
In addition, a bonus week. All excess days should be calculated as a portion of 365 days. i.e. 4 years 190 days = 4.52 years
Reckonable service is service EXCLUDING ordinary sick leave over and above 26 weeks, occupational injury over and above 52 weeks. All Breaks in Service should be within the last three years prior to the Date of Termination.
Reckonable service also excludes absence from work because of lay-offs or strikes. However, short-time work is reckonable.
All calculations are subject to the ceiling referred to above, which stands at €600 per week

Employer Rebate
Employers who pay the statutory redundancy entitlement and give proper notice of redundancy (at least two weeks) are entitled to a 60% Rebate from the Social Insurance Fund, into which they make regular payments themselves through P.R.S.I. contributions


What happens if I can’t afford to pay statutory redundancy?
In situations where the employer is unable to pay the employees their entitlements, the Department of Enterprise, Trade and Employment pays the full amount direct to the employees from the Social Insurance Fund (S.I.F.).

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