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The Redundancy Payments Acts 1967-2007

A Redundancy situation arises where an employee’s job ceases to exist, and the employee is not replaced for such reasons as:
  • Rationalisation and Reorganisation.
  • Not enough work available.
  • Company Financial Difficulties.
  • Company Closure.

The Redundancy Payments Acts place an obligation on employers to pay a “statutory redundancy entitlement” to redundant employees. The amount to be paid will depend on the employee’s length of service and normal weekly earnings (gross weekly wage + average regular overtime + payment-in-kind up to a maximum weekly wage of €600 per week).

The Acts cover employees between the ages of 16 and 66 with 2 years (104 weeks) continuous service and who have been in employment insurable under the social welfare acts. Employees who have reached 66 Years and whose date of termination is on or after 8th May 2007 are now covered by the provisions of the Redundancy Payments Acts 1967 to 2007. This does not apply to part-time employees.

Employers who pay the statutory entitlement and give 2 weeks notice of redundancy are entitled to a 60% rebate from the Social Insurance Fund.

Disputes concerning redundancy payments can be referred to the Employment Appeals Tribunal for a speedy and cost effective decision.
Click here for more on redundancy.

Employers and Employees can check a calculation at the online redundancy calculator on the Department of Enterprise Trade and Employment Website www.entemp.ie
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