Redundancy is never easy. Whether it comes unexpectedly or after long discussions, losing a job due to redundancy can be an emotionally and financially stressful experience. Fortunately, if you’re made redundant in Ireland, you have certain rights and entitlements — including Redundancy payment guide payments, notice periods, and protections under employment law.
This comprehensive guide will help you understand everything you need to know about redundancy payments in Ireland, including eligibility criteria, how payments are calculated, and your legal rights throughout the process.
What Is Redundancy?
Redundancy occurs when an employer terminates an employee’s contract because the position is no longer necessary. This might happen for a variety of business-related reasons such as:
- Company restructuring
- Closure of a business or branch
- Financial difficulties
- Technological changes making certain roles obsolete
- Mergers or acquisitions
- Outsourcing of roles
Redundancy is not a dismissal based on the employee’s performance or conduct. Instead, it reflects a change in business needs.
Who Is Eligible for Redundancy Payments in Ireland?
To qualify for a statutory redundancy payment in Ireland, you must meet the following conditions:
- You must be aged 16 or over.
- You must have at least two years of continuous service with your employer (104 weeks).
- You must be an employee, not self-employed.
- You must have been made redundant (not dismissed for misconduct).
- You must be working under a contract of employment.
Some categories of workers that can be eligible:
- Full-time workers
- Part-time workers
- Apprentices (in certain conditions)
- Employees on fixed-term contracts (if not renewed)
You may not qualify for redundancy if:
- You’re dismissed for misconduct
- You resign voluntarily (unless it’s constructive dismissal)
- You reject a suitable offer of alternative employment
Statutory Redundancy Payments – How Much Will You Get?
If you meet the eligibility criteria, your employer is required to pay you a statutory redundancy lump sum.
The payment is calculated as:
- Two weeks’ gross pay for every year of continuous service, plus
- One additional bonus week
The weekly payment is capped at €600 per week (as of current rates).
Example:
Let’s say you’ve worked for your employer for 5 years and your gross weekly pay is €700.
- Two weeks × €600 × 5 years = €6,000
- One bonus week × €600 = €600
- Total statutory redundancy payment = €6,600
If your weekly pay is below the cap, the calculation will use your actual pay.
Note: Statutory redundancy payments are tax-free.
Additional (Ex Gratia) Payments
Some employers may offer an ex gratia (voluntary) redundancy payment in addition to the statutory amount. This is usually offered as part of:
- Enhanced redundancy packages
- Collective agreements with unions
- Goodwill gestures by the employer
These additional payments are not legally required, but they must be clearly outlined in a redundancy package or termination agreement.
What Is the Notice Period?
By law, your employer must provide you with minimum notice before terminating your employment.
Statutory minimum notice periods (based on length of service):
- 13 weeks to 2 years: 1 week
- 2 to 5 years: 2 weeks
- 5 to 10 years: 4 weeks
- 10 to 15 years: 6 weeks
- Over 15 years: 8 weeks
If your contract offers a longer notice period, the longer period applies. You may also be entitled to payment in lieu of notice if your employer does not require you to work the notice period.
Redundancy and Short-Time Work
If your hours or pay have been reduced to less than 50%, you may be eligible to claim redundancy if:
- You’ve been on short-time work or laid off for 4 consecutive weeks, or
- You’ve had 6 weeks (not more than 3 consecutively) of short-time work or lay-off in a 13-week period
To trigger a redundancy claim in this case, you must give written notice to your employer using Form RP9. Your employer then has 7 days to either:
- Accept your claim and proceed with redundancy, or
- Contest your claim and continue short-time work
How to Apply for a Statutory Redundancy Payment
In many cases, your employer will process your redundancy payment automatically. However, if they fail to do so, here’s how you can claim it:
Step-by-step process:
- Ask your employer to pay the redundancy amount.
- If they refuse or are unable to pay, you can apply to the Department of Social Protection under the Redundancy Payments Scheme.
- Submit a Redundancy Claim Form (RP77) along with supporting documents.
- If approved, the state will pay your statutory redundancy and recover the cost from your employer.
Time limit: You must apply within one year from the date of redundancy.
Rights of Employees During Redundancy
Even in a redundancy situation, you’re protected under Irish employment law. Your employer must:
- Act fairly and follow proper procedures
- Provide redundancy notice in writing
- Pay you any outstanding wages, holiday pay, and redundancy entitlements
- Offer suitable alternative employment where possible
You also have the right to:
- Appeal your redundancy (e.g. if you believe it was unfair)
- Be accompanied by a colleague or representative during consultation meetings
- Receive clear communication in writing regarding the redundancy
What Happens with Other Employment Benefits?
When your employment ends, here’s what typically happens with other benefits:
- Annual leave: You’re entitled to payment for any unused annual leave.
- Pension: Your pension contributions will cease. Check if you can transfer or preserve your pension.
- Sick leave: Not usually compensated unless part of a contract or policy.
- Company perks: Health insurance, car allowances, or memberships typically end on your last working day unless otherwise agreed.
Redundancy During Maternity or Sick Leave
You can be made redundant while on maternity, paternity, adoptive, or sick leave, but the redundancy cannot be because you’re on leave. Employers must:
- Follow fair procedures
- Postpone redundancy notice until the leave period ends
If you suspect the redundancy is discriminatory, you may lodge a complaint with the Workplace Relations Commission (WRC).
Voluntary vs Compulsory Redundancy
There are two common types of redundancy:
Voluntary Redundancy
- Employees choose to leave in exchange for a package
- Usually part of wider restructuring plans
- May come with enhanced (ex gratia) terms
Compulsory Redundancy
- Employer selects employees for redundancy
- Must use fair and objective selection criteria
- Common criteria include:
- Last-in, first-out (LIFO)
- Skills and qualifications
- Performance or attendance records
- Last-in, first-out (LIFO)
If you believe you were unfairly selected, you may take a case to the WRC or the Labour Court.
What If You Think Your Redundancy Was Unfair?
Not all redundancies are lawful. You may have a case for unfair dismissal if:
- The redundancy was used to remove a particular employee unfairly
- The selection criteria were discriminatory
- No proper consultation or notice was given
- The employer hired someone else for your role soon after
You can bring a complaint to the Workplace Relations Commission within 6 months of your dismissal.
Redundancy and Social Welfare
After redundancy, you may be eligible to claim Jobseeker’s Benefit or Jobseeker’s Allowance, depending on your PRSI contributions and financial situation.
You can apply online through MyWelfare.ie or visit your local Intreo Centre.
You may also qualify for:
- Back to Education Allowance
- Springboard+ Courses
- Enterprise Support Grant (if starting a business)
Key Takeaways – Redundancy in Ireland
- Statutory redundancy = 2 weeks’ pay per year of service + 1 bonus week (max €600/week)
- You must have 2+ years of continuous service to qualify
- Voluntary redundancy may include enhanced payments
- Fair selection and procedures are legally required
- Employees have strong rights during redundancy, including notice periods, holiday pay, and the option to appeal
Final Thoughts
How much redundancy payment am I entitled to? Being made redundant can be a challenging time, but knowing your rights and entitlements can help you manage the transition with confidence. Irish employment law offers significant protection for workers, and if your employer follows the correct process, you should receive fair compensation.
If you’re unsure about your redundancy status, your payment, or if you feel you’ve been unfairly treated, consider speaking with a solicitor or your local Citizens Information Centre for guidance. You may also contact the Workplace Relations Commission for help in resolving disputes.
Redundancy may mark the end of one chapter — but with the right knowledge and support, it can also be the beginning of something new.
