- Phase
- Redundancy Payments Acts 1967-2022
- Native name
- Redundancy Payments Acts 1967-2022
- Type
- Severance pay/redundancy compensation
- Added to database
- 08 May 2015
Description
An employee who is being made redundant is entitled to a statutory payment, conditional on them having at least 104 weeks of continuous service in an employment insurable under the Social Welfare Consolidation Act 1993; is over the age of 16; and is being made redundant as a result of a genuine redundancy situation.
Employees made redundant are entitled to two weeks’ gross pay for each year of service, plus one week's wages. The payment calculation is subject to a ceiling of €600 per week. Statutory redundancy payments are exempt from tax. Any ex gratia redundancy amount (above the legal minimum) is subject to taxation.
If the employer company is liquidated and is unable to pay the redundancy entitlements, redundant employees can seek payment from the Social Insurance Fund, maintained by the Department of Social Protection, for their statutory entitlements.
In 2022, the Act was amended to make provision for payment, on the redundancy of a person who was laid off for a period as a result of COVID-19 related restrictions and whose redundancy lump sum is reduced by virtue of that period of lay-off, of an additional sum from the Social Insurance Fund. The amount of that additional sum is equal to the difference between the actual lump sum due to the person on redundancy and the amount to which they would have been entitled but for the relevant period of lay-off.
Citation
Eurofound (2015), Ireland: Severance pay/redundancy compensation, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/severance-payredundancy-compensation/ireland