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Management - Statutory requirements

The Redundancy Payments Acts, 1967-1991 places a statutory obligation on employers to pay compensation to employees dismissed for reasons of redundancy.

The Act's basic provisions are as follows:
An employee is entitled to a redundancy lump-sum payment provided they meet the following criteria:

  • 2 year minimum term of employment

  • Employment is terminated because of redundancy

The lump-sum redundancy payment is calculated as follows:

  • 0.5 week's pay for each full year of service where age during year less than 22

  • 1.0 week's pay for each full year of service where age during year is 22 or above, but less than 41

  • 1.5 weeks' pay for each full year of service where age during year is 41+

The lump-sum must be paid by the employer direct to the employee.

When dismissal actually takes place, the employee must be given a Redundancy Certificate.

When an employee is entitled to a statutory redundancy payment and has taken all reasonable steps (excluding legal proceedings) to obtain the payment, but the employer refuses or fails to pay, the employee may apply to the Department of Trade and Industry for payment. Disputes regarding entitlements under the Acts may be referred to the Employment Appeals Tribunal.

Employers are free to pay more than the law prescribes.

Note: This information is provided for general guidance purposes only. It is not intended to be a complete or authoritative statement of the Law.

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