A statutory redundancy payment under the scheme is a payment from the Social Insurance Fund by the Department of Social Protection to an employee where an employer is unable to make a statutory redundancy payment.
If your employer is unable to pay your statutory redundancy payment, an application can be submitted by the employer on your behalf to the department on Welfare Partners for payment to be made through the Redundancy Payment Scheme.
How to qualify
To qualify for the Redundancy Payment Scheme the following conditions must be met:
104 weeks of continuous employment with the same employer
employment is fully insurable under the Social Welfare Acts
the job must no longer exist
employee must be over 16
This scheme covers employees who are insured for all benefits under social welfare legislation. Generally, this means an employee who pays class “A” PRSI
The employer has a responsibility to pay statutory redundancy payments to all eligible employees. This entitlement is in accordance with the Redundancy Payment Act.
Employees in continuous service with the same employer for at least 13 weeks are entitled to a minimum period of notice
before an employer can dismiss them.
Rate of payment
The rate of statutory redundancy is two weeks’ pay for every year of service (over the age of 16) plus one additional week’s pay. Payment is subject to a limit of €600 per week.
Your normal gross weekly wage is used in the calculation. If you do not have a normal weekly wage, an average is used to calculate the payment.
Different types of absences from work will either be included or excluded as service when calculating the actual length of time you have continuously worked for your employer. Inclusions are known as reckonable service and exclusions are known as non-reckonable service.
Reckonable service list
If you have been absent from work over the last 3 years, many reasons for absence are included in the calculation of your service. These include:
Any period of basic and additional maternity leave
Any period of basic paternity, parental, adoptive or parent’s leave
Carer's leave up to 104 weeks
Sick leave up to six months per absence for ordinary illness or occupational sick leave up to one year
Non-reckonable service list
If you have been absent from work over the last 3 years, some reasons for absence will not be included in the calculation of your service. These include:
Temporary lay off
Occupational Sick Leave for more than 52 weeks
Illness for more than 26 weeks
Minimum Notice Period
Employees in continuous service with the same employer for at least 13 weeks are entitled to a minimum period of notice before an employer can dismiss them.
Length of Service
13 weeks to less than 2 years
2 years to less than 5 years
5 years to less than 10 years
10 years to less than 15 years
More than 15 years
An employer may decide to make a payment instead of giving notice.
If you have not received a Redundancy Payment and you believe you are entitled to one, contact your employer. You should do this in writing to ensure there is a record of the request. There is a time limit of one year from the date of termination to apply to your employer for redundancy payment.
If the company has gone into liquidation, then the liquidator becomes the employer’s representative and will respond to enquiries in relation to redundancy payments.
If your employer refuses to pay redundancy or disputes your entitlement
Once a payment has been made from the social insurance fund by the department a debt will be raised against the employer. The department will seek to recover this debt from the employer. Repayments can be made by a lump sum payment or by regular instalments.