In order to qualify for a redundancy payment an employee must have worked continuously for an employer for a period of at least two years (104 weeks).
The main points to consider when seeking redundancy payments:
- You must receive a Redundancy Certificate from the company. This must be given to the employee not later than the date on which the dismissal / redundancy takes place.
- There must be legitimate reasons for Redundancy
- You must receive sufficient notice of Redundancy and the reasons why.
- Redundancy must not be based on any of the following grounds:
- Membership/Trade Union Activity
- Religious/ Politician Opinions
- Civil proceedings against the employer
- Race
- Sexual Orientation
- Age
- Membership of the traveling community
- Pregnancy
- Gender
- Family Status
- Marital Status
- A lump sum redundancy payment is payable to the employee and is calculated as follows:
(a) Two weeks pay for every year of service subject to a statutory limit of €600
(b) In addition, the equivalent of one week’s normal pay subject to a statutory limit of €600
This is best illustrated by an example. Jim has been working for 4 and ½ years.
Therefore he is entitled to :
(4 years x 2 Weeks) = 8 Weeks +
(1/2 year x1 Week) = 1 Week +
1 additional week
= 10 Weeks.