Redundancy Pay

Statutory Redundancy Pay

If an employee is made redundant, they may be entitled to a statutory redundancy payment under the Redundancy Payments Acts 1967-2014. Redundancy pay is based on an employee's age and length of service. An employee must have 2 full years service before they are entitled to statutory redundancy pay. 

An employee will be entitled to receive a '2 weeks’ gross pay' for each year of reckonable service and one additional weeks pay.

A week's pay for the purposes of calculating redundancy is capped at €600.  Where an employee earns more than the maximum, they will receive the maximum amount of €600 

Statutory redundancy is a tax-free payment.

Important Note: In addition to statutory redundancy pay, an employee will be entitled to notice pay (see Notice), although they may be asked to work their notice period. 

Note: A Company may have an enhanced redundancy payment scheme that pays in excess of statutory redundancy.  Please check this as it would override the statutory redundancy payments.