Does your employer have to pay you redundancy?

Does your employer have to pay you redundancy?

If you’ve been in the same job for at least two years, your employer has to pay you redundancy money. The legal minimum is called ‘statutory redundancy pay’, but check your contract – you might get more.

How much do you get paid if you get redundancy?

Employees in continuous service with the same employer for at least 13 weeks are entitled to a minimum period of notice before an employer can dismiss them. The rate of statutory redundancy is two weeks’ pay for every year of service (over the age of 16) plus one additional week’s pay. Payment is subject to a limit of €600 per week.

How is redundancy pay calculated when you are on furlough?

Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice. If you were paid less than usual because you were ‘on furlough’ because of coronavirus, use what you would have earned normally when calculating your redundancy pay, not what you were paid while on furlough.

Who is eligible for the Redundancy Payments Act?

The employer should pay statutory redundancy payments to all eligible employees. This entitlement is in accordance with the Redundancy Payments Act. The scheme covers employees who are insured for all benefits under social welfare legislation.

How is the rate of statutory redundancy calculated?

The rate of statutory redundancy is two weeks’ pay for every year of service (over the age of 16) plus one additional week’s pay. Payment is subject to a limit of €600 per week. Your normal gross weekly wage is used in the calculation. For those workers that do not have a normal weekly wage an average is used to calculate the payment.

Do you have to pay redundancy pay when you are made redundant?

When an employee’s job is made redundant their employer has to give them redundancy pay, also known as severance pay. Use our Notice and Redundancy Calculator to calculate redundancy pay. Redundancy pay doesn’t need to be paid in some circumstances eg. by some small businesses and to casual employees.

Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice. If you were paid less than usual because you were ‘on furlough’ because of coronavirus, use what you would have earned normally when calculating your redundancy pay, not what you were paid while on furlough.

The rate of statutory redundancy is two weeks’ pay for every year of service (over the age of 16) plus one additional week’s pay. Payment is subject to a limit of €600 per week. Your normal gross weekly wage is used in the calculation. For those workers that do not have a normal weekly wage an average is used to calculate the payment.

What’s the maximum salary for a redundancy lump sum?

Since 1 January 2005 the maximum earnings taken into account in the calculation of statutory redundancy lump sum payments are €600 per week (€31,200 per year). On the date of the termination of employment your employer should pay the redundancy lump sum due to you.