Statutory Redundancy

Under the Redundancy Payments Acts of 1967 - 2007 employers must, by law, pay compensation to employees dismissed for reasons of redundancy. To be eligible for a payment under the Redundancy Payments Acts, the employee must satisfy the following requirements:

  • Be aged over 16 years of age
  • Be in employment that is insurable for all benefits under the social welfare system (PRSI Class "A")
  • Have worked continuously for the employer for at least 104 weeks
  • Have been in continuous employment for more that two years if a part-time worker

The same rules applies to apprentices. Apprentices qualify for redundancy unless let go within one month of completing an apprenticeship

Useful Publications / Services

Calculating Statutory Redundancy

An eligible employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week. A week's payment is subject to a maximum ceiling called a statutory ceiling. The ceiling currently stands at €600 per week

  • All statutory redundancy payments are tax-free

Example

Mary is aged 45 and is being made redundant. She has worked for her employer for 10 complete years. Her statutory redundancy payment will be calculated as follows:

  • Two week's pay x 10 (the amount of years of service) = 20 weeks
  • Plus one week's bonus pay

Total Statutory Redundancy Entitlement = 21 weeks pay