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Redundancy Payments Scheme
From Department of Social Protection
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A redundancy payment under the scheme is a payment from the department to an employee where an employer is unable to make a redundancy payment.
If your employer is unable to pay your statutory redundancy payment an application can be submitted to this department for payment to be made through the Redundancy Payments Scheme.
To qualify for the Redundancy Payments Scheme the following conditions must be met:
- 104 weeks of employment with the same employer
- employment is fully insurable under the Social Welfare Acts
- employee must be over 16
- the job no longer exists
The employer should pay statutory redundancy payments to all eligible employees. This entitlement is in accordance with the Redundancy Payments Act.
The scheme covers employees who are insured for all benefits under social welfare legislation. Generally this means an employee who pays class “A” PRSI
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.
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. For those workers that do not have a normal weekly wage an average is used to calculate the payment.
The redundancy calculator can be used to calculate redundancy entitlements before making a claim.
- Average overtime can be included in the calculation based on a 6-month period.
- Normal weekly wage for shift workers and piece workers will also be calculated based on a 6-month period. Piece workers are those that are paid depending on the amount of work done.
- Workers with no normal working hours should use an average based on the last 52 weeks worked.
Before using the redundancy calculator you need to be aware of service inclusions and exclusions as detailed here
If you have not received a Redundancy Payment and you believe you are entitled to one, please contact your employer. You should do this in writing to ensure there is a record of the request. There is a time limit of 1 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.
To apply for a Redundancy Payment under the Redundancy Payment Scheme, the employer should complete the online application form. This form is called an RP50 and can be accessed here.
Once the RP50 has been submitted online, it should be printed down and then signed by both the employer and the employee. and then submitted to the address below.
Some further information will be required:
- financial information and proof that the employer is unable to pay by way of an up to date Statement of Affairs
Redundancy Section
Address:
Redundancy Section, Gandon House, Amiens Street
, Dublin 1
, D01 A361
Phone number:
Please note that claims should be submitted to the department within 52 weeks of the date of termination of employment.
