Redundancy procedures

Information

If you become redundant your employer must follow certain procedures. Redundancy occurs where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff. The Redundancy Payments Acts 1967-2007 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer. Not all employees are entitled to this statutory redundancy payment, even where a redundancy situation exists. You can check if you qualify for redundancy here.

Employer rebate reduction: The employer rebate of statutory redundancy payments made to employees on or after 1 January 2012 is 15% (was 60%).

Rules

In addition to the provisions in the legislation as regards collective redundancies your employer must follow certain fair procedures that is, to give you at least 2 weeks' notice and on the date of dismissal pay your redundancy payment. There are also various procedures with regard to selection for redundancy, alternative work and time off.

Selection for redundancy

In selecting a particular employee for redundancy, an employer should apply selection criteria that are reasonable and are applied in a fair manner. You are entitled to bring a claim for unfair dismissal if you consider that you were unfairly selected for redundancy or consider that a genuine redundancy situation did not exist. Examples of these situations might include where the custom and practice in your workplace has been last in, first out and your selection did not follow this procedure. Another example may be where your contract of employment sets out criteria for selection which were not subsequently followed.

Under the unfair dismissals legislation, selection for redundancy based on certain specific grounds is considered unfair. These include redundancy as the result of an employee's trade union activity, pregnancy or religious or political opinions. The employment equality legislation also prohibits selection for redundancy that is based on any of the following 9 grounds: gender, civil status, family status, age, disability, religious belief, race, sexual orientation or membership of the Traveller community.

Alternative work

As with any dismissal, an employer must act reasonably when dismissing an employee in a redundancy situation. This requires prior consultation with you before the decision is made. In addition, your employer should consider all options including possible alternatives.

If your employer makes you a reasonable offer of alternative work, and you refuse it, you may lose your entitlement to a redundancy payment. Generally speaking, alternatives which involve a loss of status or worsening of the terms and conditions of your employment would not be considered reasonable. Similarly, you may be justified in refusing an offer that involves you travelling an unreasonable distance to work.

You may take up an alternative on trial for up to four weeks. Where the alternative involves a reduction of 50% or more in hours or pay, working under the new arrangements for up to 52 weeks will not count as an acceptance.

If you accept a new contract or re-engagement with immediate effect and the terms do not differ from those of the previous contract, you will not be entitled to claim redundancy. This also applies if you refuse such an offer unreasonably.

If you accept an offer in writing from your employer for a new and different contract which will take effect within four weeks of the ending of the previous contract, you will not be entitled to claim redundancy. Equally, if you refuse such an offer unreasonably, you will lose your right to a redundancy payment.

Your justifiable refusal of an offer of alternative work, followed by dismissal, may, depending on the circumstances, entitle you to seek statutory redundancy or make a claim for unfair dismissal.

Any offer of alternative work should be given to you in writing and you are entitled to full information concerning the details of the offer.

Notice from the employer

You are entitled to a minimum of two weeks' notice of redundancy. This notice period goes up depending on the period of service.

Notice when on lay-off or short time: If you have been laid off or put on short-time work, this means that your contract of employment is temporarily suspended. If your employer then decides to make you redundant, he or she must re-activate your contract in order to dismiss you on grounds of redundancy. When your employer gives notice of redundancy you are entitled to the full notice period. If you are made redundant and you are not required to work out your notice you are entitled to payment in lieu of notice which is your normal pay for that notice period.

For example, if you have been on short-time work and your employer then makes you redundant your payment in lieu of notice is based on the hours of work in your contract of employment, not on the short-time hours of work.

Time Off

If you are being made redundant, you are entitled to reasonable paid time off in order to look for a new job. This right is set down in law in Ireland in Section 7 of the Redundancy Payments Act, 1979. (You should note that while the Redundancy Acts have been amended a number of times the provisions as set down in 1979 for time off, still remain in force today.)

Holidays

You are entitled to any holidays that are outstanding or payment in lieu of holiday.

Leaving before your notice expires

Between receiving your notice of redundancy and the date your employment ends, you may give your employer notice that you wish to leave before the end of your notice period. You do this by completing form RP6 (available from the National Employment Rights Authority - see 'Further information' below) and giving it to your employer. Your employer has discretion as to whether to grant your request or not. You should note that leaving during the notice period without your employer's agreement may affect your entitlement to a redundancy payment.

Social welfare payments

When you lose your job you should register as unemployed by signing on with your local social welfare office. If you have enough social insurance contributions you may be entitled to Jobseeker's Benefit. If you do not have enough PRSI contributions you may qualify for Jobseeker's Allowance which is a means-tested benefit.

How to apply

Employers who pay the statutory redundancy entitlement and give proper notice of redundancy (at least two weeks) are entitled to a 60% rebate from the Social Insurance Fund. It was announced in Budget 2012 that the employer rebate of statutory redundancy payments is reduced from 60% to 15%. The reduced rebate applies to rebates on payments made to employees on or after 1 January 2012. To make a claim for this rebate employers submit form RP50 to the Redundancy Payments Section of the Department of Social Protection within 6 months of the date of termination of employment.

A redundancy claim can be made online. You may also be interested in reading information for employers on making a redundancy claim here.

Your employer must give you at least 2 weeks' notice of the redundancy using "Redundancy Notification" - section A of form RP50. On the date of the termination of employment the employer must give you a "Redundancy Certificate" - section B of form RP50 - and should pay the redundancy lump sum due to you.

If your employer has not paid you your redundancy lump sum you should apply to your employer for it, using form RP77 (available from Workplace Relations Customer Services - see 'Further information' below). If your employer still refuses to pay it, you can apply to the Department of Social Protection for direct payment from the Social Insurance Fund. You apply using form RP50 as follows:

• If your employer is unable to pay your redundancy lump sum, he should sign the RP50 and submit a letter from an accountant or solicitor stating he is unable to pay and accepting liability for the 85% (from 1 January 2012) owing to the Social Insurance Fund together with documentary evidence such as audited accounts
• If your employer refuses to pay your redundancy lump sum or if there is a dispute about redundancy you may bring a claim to the Employment Appeals Tribunal using the new single complaint form (pdf) and guidance notes (pdf). This must be done within one year of your dismissal. To apply for your lump sum you send a completed form RP50 together with a favourable decision from the Employment Appeals Tribunal

Insolvency: If the company has been liquidated or is in receivership, the completed form RP50 should be sent in by the liquidator or receiver on behalf of the employees.

The application for payment from the Social Insurance Fund should be sent to the Redundancy Payments Section, Floor 2, Department of Social Protection, Block C, The Earlsfort Centre, Lower Hatch Street, Dublin 2.

You can request a form by texting “FORM REDUNDANCY” followed by your name and address to 51909 (standard text rates apply).

You can find a list of frequently asked questions on the website of the Department of Social Protection. Further information about redundancy entitlements is in the Guide to the Redundancy Payments Scheme (pdf).

For further information about the Redundancy Payments Scheme contact Workplace Relations Customer Services.

Further information

Workplace Relations Customer Services

(formerly Information Services of the National Employment Rights Authority)
Department of Jobs, Enterprise and Innovation
O'Brien Road
Carlow
IRELAND
Opening Hours: Mon. to Fri. 9.30am to 5pm
Tel: (059) 917 8990
Locall: 1890 80 80 90
Homepage: http://www.workplacerelations.ie/