1. Introduction to Redundancy
What must be remembered is that a redundancy is a dismissal. Therefore, for it to be a fair dismissal (and avoid a claim for unfair dismissal) it must fall within the definition of redundancy (above) and a fair procedure must be followed in actioning the redundancy.
A redundancy procedure will have a number of stages including:
- The redundancy must be a genuine redundancy and fall within the definition above
- A fair selection criteria must be carried out to identify which employees may be redundant (and the selection must be from an appropriate 'pool')
- The Company must consult with employees about the situation
- The Company must consider alternatives to redundancy
- Employees who are made redundant must be made payments due under statutory redundancy and their contract of employment (and statutory notice provisions) or any enhanced redundancy policy.
An employee does not have the right to appeal against a redundancy (unlike within the disciplinary procedure where an appeal is an integral part in making sure the procedure is fair). However, it is generally considered to be best practice to include an appeal process.
Below provides more information in relation to the entitlement, eligibility and process of redundancy.
Redundancy occurs where an employee’s position ceases to exist and the employee is not replaced. Any employee aged 16 or over with 104 weeks’ continuous service with an employer is entitled to a statutory redundancy payment in this situation.
An employee who has received a 'Notice of Proposed Dismissal for Redundancy (Form RP50 (Part A))' may decide to leave the employment earlier than the date of redundancy notified to him/her, for example to take up an offer of alternative employment. If he/she decides to leave, there is a risk that he/she may lose any entitlement to redundancy payments unless they notify their employer in writing using Form RP6 - Leaving Before a Redundancy Expires. An employer has discretion as to whether to grant such a request or not. It should be noted that leaving during the notice period without the employer's agreement may affect a person's entitlement to a redundancy payment.
If you have been laid off or on short-time working for 4 weeks or more, you may give your employer notice of your intention to claim a redundancy payment on Form RP9 - Lay Off and Short Term Procedures.
The Emergency Measures in the Public Interest (Covid 19) Act 2020 suspended some provisions relating to layoff and short-time in 2021.
If an employer has not paid the employee his/her redundancy lump sum, he/she should apply to the employer for it using form RP77 - Claim by an Employee against an Employer for a Lump Sum or Part of a Lump Sum. If your employer still refuses to pay it, you can apply to the Department of Employment Affairs and Social Protection for direct payment from the Social Insurance Fund.
The statutory redundancy payment is two week’s gross pay per year of service up to a ceiling of €600 per week plus one week’s pay, which is also subject to the ceiling of €600. Tax advice should be taken or offered to the employee in how this is paid in the most efficient manner, some employers may make redundancy agreements above the statutory rate, any Ex Gratia payment may be taxable.
Further information will also be published on www.welfare.ie
For a copy of the relevant redundancy forms please go to the redundancy page on the Department of Employment Affairs and Social Protection website.
Use these links to view or download copies of the Redundancy Payments Act, 1967 or the Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act, 2007.