Due to the current economic downturn some people are facing a redundancy situation; but do you know exactly what your rights are? Under the Redundancy Payments Scheme all eligible employees are entitled to a statutory redundancy lump sum payment on being made redundant.
What is a Redundancy?
A redundancy situation occurs when an employer requires fewer employees to do work in his company, when a company goes into liquidation or receivership, when it is decided to rationalise or reorganise a company or when a company simply closes down. A redundancy situation arises in general where an employee’s job no longer exists and he/she is not replaced.
Are you eligible for a statutory redundancy lump sum?
Under the Redundancy Payments Scheme all eligible employees are entitled to a statutory redundancy lump sum payment on being made redundant. An employee is entitled to two weeks pay for every year of service, with a bonus week added on, subject to the prevailing maximum ceiling on gross weekly pay (€600 with respect to redundancies notified after 1st January 2005)
What are the requirements you need to cover to be entitled to a statutory redundancy lump?
You must have at least two years continuous service in the company.
You must be in employment which is insurable under the Social Welfare Acts. If you are a full-time employee you must be in employment which is fully insurable for all benefits under the Social Welfare Acts; this does not apply if you are a part-time employee.
You must be between the age of 16 and Old Age Pension age, which at present is 66 years of age except for employees whose Date of Termination is on or after 8th May 2007 there is no upper age cap.
You must have been made redundant as a result of a genuine redundancy situation – in general this means that the job no longer exists and the person is not replaced.
Be aware that under the Redundancy Payments Act 2003 an eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. All statutory redundancy payments are tax-free.
By Zuriñe Álvarez
What is a Redundancy?
A redundancy situation occurs when an employer requires fewer employees to do work in his company, when a company goes into liquidation or receivership, when it is decided to rationalise or reorganise a company or when a company simply closes down. A redundancy situation arises in general where an employee’s job no longer exists and he/she is not replaced.
Are you eligible for a statutory redundancy lump sum?
Under the Redundancy Payments Scheme all eligible employees are entitled to a statutory redundancy lump sum payment on being made redundant. An employee is entitled to two weeks pay for every year of service, with a bonus week added on, subject to the prevailing maximum ceiling on gross weekly pay (€600 with respect to redundancies notified after 1st January 2005)
What are the requirements you need to cover to be entitled to a statutory redundancy lump?
You must have at least two years continuous service in the company.
You must be in employment which is insurable under the Social Welfare Acts. If you are a full-time employee you must be in employment which is fully insurable for all benefits under the Social Welfare Acts; this does not apply if you are a part-time employee.
You must be between the age of 16 and Old Age Pension age, which at present is 66 years of age except for employees whose Date of Termination is on or after 8th May 2007 there is no upper age cap.
You must have been made redundant as a result of a genuine redundancy situation – in general this means that the job no longer exists and the person is not replaced.
Be aware that under the Redundancy Payments Act 2003 an eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. All statutory redundancy payments are tax-free.
By Zuriñe Álvarez
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