Redundancy Information for Ireland
What is 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.
The Redundancy Payments Acts 1967–2014 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer.
RIGHTS
In order to be eligible for a statutory redundancy payment, an employee must:
Be aged between 16 and 66 years of age
Be in employment and paying PRSI contributions, which are insurable for all social welfare benefits. Currently this is only a PRSI Class A contribution.
Have worked continuously for the employer for at least 2 years (104 weeks)
Have been working continuously for the employer for more than 2 years if working part-time
You are entitled to a minimum of 2 weeks' written notice of redundancy. This notice period goes up depending on the period of service.
Other redundancy rights
Prior consultation is required with you before any decision is made.
Your employer should consider all options including possible alternatives.
Any offer of alternative work should be given to you in writing and you are entitled to full information concerning the details of the offer.
If you are being made redundant, you are entitled to reasonable paid time off in order to look for a new job. This right is set down in law in Section 7 of the Redundancy Payments Act 1979.
The employer is obliged to provide the employee representatives with all information in writing in relation to the proposed redundancies including
The reasons for the proposed redundancies;
the number and descriptions or categories of employees whom it is proposed to make redundant;
the number of employees, and description of categories, normally employed;
the period in which it is proposed to affect the redundancies.
the criteria proposed for the selection of the workers to be made redundant, and
the method of calculating any redundancy payments other than those methods set out in the Redundancy Acts or any other relevant enactment for the time being in force or, objects thereto, in practice.
When you get your final pay, you should check you got:
any redundancy pay you’re entitled to (or you’ve been told when you’ll get it)
your last wages/salary
any ‘pay in lieu’ if you’re not working your full notice
any holiday pay you’re entitled to
any outstanding bonus, commission or expenses you’re entitled to.
If you feel you have been made redundant unfairly
Under the unfair dismissals legislation, selection for redundancy based on certain specific grounds is considered unfair. These include redundancy as the result of an employee's trade union activity, pregnancy or religious or political opinions. The employment equality legislation also prohibits selection for redundancy that is based on any of the following 9 grounds: gender, civil status, family status, age, disability, religious belief, race, sexual orientation or membership of the Traveller community.
TAX
A statutory redundancy lump sum, which under the law must be paid, is entirely tax-free.
If you receive a payment above and beyond the statutory payment (an ex-gratia payment), that is taxable, but only when it goes over a certain limit. (Link to revenue & redundancy
Social welfare
If a person loses their job they should immediately contact their local Social Welfare Office where they can apply for the two main unemployment payments - Jobseeker's Benefit (JB) or Jobseeker's Allowance (JA). This is very important as any delay in making their claim could result in a loss of payment.
If you have enough social insurance contributions, you may be entitled to Jobseeker’s Benefit. If you do not have enough PRSI contributions, you may qualify for Jobseeker’s Allowance which is a means-tested benefit.
On the date of the termination of employment your employer should pay the redundancy lump sum due to you.
If your employer is paying you the redundancy lump sum, they are not required to submit an RP50 form. However, your employer should get proof of payment of your lump sum to you and give you a copy of the proof of payment.
If your employer has not paid your redundancy lump sum, you should apply to your employer for it using form RP 77 (pdf). If your employer still does not pay it, you can apply to the Department of Social Protection for direct payment from the Social Insurance Fund as follows:
If your employer is unable to pay your redundancy lump sum, they should complete and sign form RP50. They should also submit a letter from an accountant or solicitor stating they are unable to pay and accepting liability for 100% of the lump sum owing to the Social Insurance Fund. Documentary evidence such as audited accounts should also be included.
For both JB and JA payments an unemployed person must be:
Resident in the Irish Republic
Under 66 and 16 or over for entitlement to Jobseeker's Benefit and 18 or over for entitlement to Jobseeker's Allowance
Unemployed for at least 3 days out of any consecutive 6 days
Available for, Capable of and Genuinely Seeking Full-time work
Unemployment Payment Rates & Collecting your Payment
Making a career change.
Back to education programme
Under the programme income support is provided to allow participants to undertake a second or third level course
Adult education Guidance initiative.
Provides guidance regarding adult educational opportunities.
Vocational Training opportunities scheme (VTOS)
Second chance education initiative for the unemployed
Help getting a new job
Intreo / Department of Social Protection
This is a single point of contact for all employment services and provides individualised supports to job seekers.
Employment support services
Facilitate access to the labour market for job seekers at local, regional and national level.
Local employment service.
Employment activation services
Job Club
Provides jobseekers with job seeking skills.
Further information.
Redundancy Payments Section
Department of Social Protection
Tel:(01) 673 4500 Locall:1890 800 699
https://www.workplacerelations.ie/en/
http://www.welfare.ie/en/Pages/Guide-to-the-Redundancy-Payments-Scheme.aspx
https://www.workplacerelations.ie/en/
National centre for guidance in education (01) 869 0715
Education section at the Department of Education and Skills. info@education.gov.ie
Citizens information board. Info@ciboard.ie
