Redundancy Payments Acts, 1967-1991

An employee qualifies for statutory redundancy pay if aged 16 or over, in employment that is insurable under the Social Welfare Acts. Full-time employees under the age of 66 must be paying Class A PRSI, he or she has 104 weeks continuous service with the employer. Dismissal must result by reason of redundancy which is very widely defined. "Redundancy" does not merely arise where a business closes down or where an employer reduces the size of the workforce. The definition includes circumstances where the employer decides that different or even additional skills or qualifications are required for the job.

The calculation of statutory redundancy pay is based on a ceiling of €600 salary per week. The statutory redundancy payment is a lump-sum payment based on the pay of the employee. All eligible employees are entitled to:

•Two weeks' pay for every year of service over the age of 16 and
•One further week's pay

Employers qualify for a 15% rebate from the Redundancy Fund maintained by the Department of Enterprise, Trade and Employment.

Disputes over entitlement are referred to the Employment Appeals Tribunal. Employees being made redundant have the right to time off during the notice period to find alternative work.

Where collective redundancies occur, the workers concerned and their representatives have certain consultation and information rights under EC Legislation.