What is redundancy?
Where you lose your job because your employer is closing the business or reducing the number of staff, this is known as redundancy. It happens when your job in the company no longer exists, you are let go and are not replaced.
My employer gave me notice of redundancy, what does this mean?
If your employer needs to reduce the workforce and decides to make redundancies, these can be compulsory or voluntary. In a compulsory redundancy, your employer can decide which roles will be made redundant, but they must:
Start a consultation process with you at least 30 days before you are given notice of
redundancy
Give you a valid reason for making you redundant, for example, that the business is
having financial difficulties or is closing down
Use fair selection criteria and follow a process set in legislation
The aim of the consultation process is to avoid redundancy and check if there are any alternative roles for you. Any alternative role offered should be reasonable, meaning you would have a similar status and working terms and conditions. If you can’t find a suitable alternative, then you continue with the redundancy process.
What redundancy pay can I get?
You are entitled to a minimum redundancy payment after you have 2 years’ (104 weeks) service in your job. This is known as statutory redundancy. The maximum weekly amount used to calculate redundancy pay is €600 a week (or €31,200 a year), even if your pay is more per week. If you qualify for statutory redundancy you get:
2 weeks’ pay for each year of service
1 extra weeks’ pay
Can I get more than statutory redundancy pay?
It depends on your employer. Generally, your employer does not have to pay you anything on top of the normal statutory payment, unless this is stated in your contract or in a collective agreement. Your employer may give you a voluntary top-up payment, but they don’t have to. You might get other payments for unused annual leave or pay instead of working the full notice period.
You can find out more about redundancy and redundancy pay at
https://bit.ly/Redundancy_Ireland and https://bit.ly/Redundancy_payment, or call us on 0818 07 4000 (Monday to Friday, 9am to 8pm)
Know Your Rights has been compiled by South Connacht Citizens InformationService CLG, which provides a free and confidential service to the public.
Tel: 0818 07 6330 Address: Boyle CIC, Elphin Street, Boyle, Co. Roscommon. Information is also available online at citizensinformation.ie and from the Citizens Information Phone Service, 0818 07 4000.
