Redundancy Payment Procedures Explained
Employers are required to follow certain procedures when they deem an employee redundant. Employee redundancy occurs when you lose your job due to business closure, business need to reduce the number of employees and company mergers that may render some employees jobless. Luckily, employees are protected by the redundancy payments act that stipulates the minimum redundancy payment entitled to employees who have worked with their employer for at least 104 weeks (2 years). As such, not all employees are entitled to the statutory redundancy payment even when a redundancy situation exists.
Who qualifies for redundancy payment?
According to the redundancy payments act, you must satisfy the following requirements to qualify for a redundancy payment.
- You must be 16 years or older.
- You must be attached to an insurable employment as per the social welfare act. All full-time employees under 66 years must be paying for class A PRSI to qualify for payment.
- You must have worked with the said employee for at least 2 years continuously.
- You must have been declared redundant.
- The following situations do not break the 2 years continuous working requirements.
- Maternity leave, adoptive leave, paternity leave, carer’s leave and parental leave.
- You did not attend work because of illness, agreed holiday, absence or lay off.
- You were terminated due to redundancy before attaining the 2 years minimum service requirement and rehired by the same employer within 26 weeks after the termination.
- You were rehired within 4 weeks by your employer’s associate company after termination.
- You were voluntarily transferred to another employer upon an agreement that your service continuity will not be broken.
- The company you work for has been acquired by a new owner.
- You were on strike or locked out of your work premise.
Employment law solicitors Dublin are tasked to explain the above requirements to affected employees as well as offer credible legal advice on the next cause of action. That is, how to claim redundancy payment if you qualify.
Your employer must provide a 2 weeks redundancy notice and pay the redundancy lump sum on the termination date. Note that, the employer should offer the lump sum payment proof. If the lump sum payment is not paid on the termination date, you should file form RP50 or seek assistance from employment law solicitors Dublin. If your employer is unable to pay the redundancy lump sum, the department of social protection facilitates a direct payment from the social insurance fund.
A lump sum redundancy payment is made to qualifying employees and is calculated as follows; two weeks payment for every service year subject to a 600 euros statutory limit and one-week regular pay also subject to the 600 euros statutory limit.
Redundancy can render you financially incapable and stressed because it is never foreseen. Hence, you should ensure that you get the right payment send off to support you as you seek alternative employment. If you feel like you were unfairly selected for redundancy, seek advice from employment law solicitors Dublin on how to file a convincing unfair dismissal claim.