Frequently asked questions about redundancy

Where can I find out about redundancy rights during the COVID-19 emergency period?

For up to date information on the rules on claiming redundancy from your employer if you have been laid off, or put on a short-time work arrangement, you can read our document 'Employment rights during the COVID-19 restrictions'.

How will sick leave affect my redundancy?

When the actual length of your service for redundancy payment purposes is being calculated, the following periods over the last 3 years are included in the calculation:

  • Any period of absence from work due to illness up to 26 consecutive weeks
  • Any period up to 52 consecutive weeks where you were off work due to an injury at work

If you are out sick, then return to work, go out sick again, and return to work again, each period of your sick leave up to 26 consecutive weeks is included in the calculation of your length of service for redundancy payment purposes.

What is a reasonable alternative ?

If your employer makes you a reasonable offer of alternative work, and you refuse it, you may lose your entitlement to a redundancy payment. What is reasonable depends on the facts of each case. Generally speaking, alternatives which involve a loss of status or lessening of the terms and conditions would not be considered reasonable. Likewise, you may be justified in refusing an offer that involves you travelling an unreasonable distance to work.

What is the difference between short time for redundancy purposes as opposed to social welfare purposes?

In redundancy legislation short time is defined as a situation where, due to a reduction in the amount of work to be done, your pay or hours are less than half the normal weekly amount. This must be a temporary situation and your employer must notify you before the reduction starts.

For social welfare purposes the definition of short-time employment is employment in which, for the time being, the number of days systematically worked in a working week is less than the normal number of days in a working week in the employment concerned.

How does accepting reduced working hours or pay affect my redundancy payment later on ?

If you were made redundant within one year of being put on reduced hours or pay, your redundancy payment would be based on your earnings for a full week. If you are made redundant after working reduced hours for more than a year, how your payment will be calculated depends on whether you accepted being on reduced hours or not. If you fully accepted the reduced working hours as your normal week and never asked to return to full-time work, then your redundancy payment will be based on your gross pay for the reduced working hours. If, on the other hand, you never accepted the reduced working hours as your normal hours and continually asked to be put back on full-time working, then it is clear you did not accept your reduced working hours as normal. If you have a dispute about this with your employer you could make a claim to the Workplace Relations Commission.

How will short time affect my redundancy payment?

If you have been put on short time and then are made redundant your redundancy payment may be based on your pay for a full week. It has been the view of the Workplace Relations Commission that when a person is put on short time, that is, less than half their normal weekly earnings, the gross wage for the calculation of a redundancy lump sum is based on a full week's pay.

I have been on short-time working for 2 months and my employer is now making me redundant. Is my entitlement to notice based on my short-time hours?

No. When your employer gives you notice, your notice entitlement is based on your full-time work. When you were put on short-time work, your contract of employment was temporarily suspended. When your employer decided to make you redundant, they had to re-activate your contract in order to dismiss you on grounds of redundancy. If you were made redundant and you were 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. This means that your notice entitlement is based on the hours of work in your contract of employment, not on the short-time hours of work.

Can I be made redundant if I am on sick leave?

If your employer decides to make you redundant while you are on sick leave, you may qualify to bring a claim for unfair dismissal. Unless your employer can prove there was a genuine redundancy situation and that fair procedures were followed, your dismissal may be found to be unfair. Even if a genuine redundancy situation exists, you may bring a claim for unfair dismissal if you consider that you were unfairly selected for redundancy. Your employer should apply selection criteria that are reasonable and are applied in a fair manner.

Can I be made redundant if I am on carer's leave?

If you are dismissed on grounds of redundancy, while on carer’s leave, under the Carer’s Leave Act 2001 it would be considered unfair dismissal. If your employer does not allow you to return to work at the end of your carer’s leave you may qualify to bring a claim under the Unfair Dismissals Acts 1977-2015. However you may be made redundant after you have returned to work.

Can I be made redundant if I am on maternity leave?
No, you may not be made redundant while on maternity leave or additional maternity leave. You may be made redundant when you return to work or while you are pregnant before you go on maternity leave. However if you are selected for redundancy because you are pregnant, you may qualify to bring a claim for unfair dismissal. Selection for redundancy based on certain grounds such as pregnancy is considered unfair under the unfair dismissals legislation.

If I get more than statutory redundancy?

If your employer pays you more than the statutory lump sum, your statutory redundancy payment is tax free but some of your lump sum payment may be taxable.

My employer says he cannot afford to pay my redundancy, what should I do?

If your employer has not paid your redundancy lump sum, you should apply to your employer for it using form RP77 (pdf). 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. It must be done as follows:

  • If your employer is unable to pay your redundancy lump sum, he should log on to the new Welfare Partners service and complete and submit an online application form (previously the RP50 form).
  • If your employer refuses to pay your redundancy lump sum or if there is a dispute about redundancy you can bring a claim to the Workplace Relations Commission. You must use the online complaint form available on This must be done within one year of your dismissal. Then you apply for your lump sum by sending a completed form RP50 together with a favourable decision from the adjudicator of the Workplace Relations Commission.

How are overtime and bonuses and profit sharing used in calculating my weekly wage for Redundancy purposes?

The weekly wage for redundancy purposes is your gross pay before tax and PRSI deductions. It is calculated by adding together your gross weekly wage, average regular overtime and benefits-in-kind up to a maximum of €600 a week.

Average weekly overtime earnings are calculated as follows:

  • First, find the total amount of overtime earned in the period of 26 weeks ending 13 weeks before the date of redundancy
  • Then, divide the total by 26 to get the average weekly overtime earnings

My organisation went under a transfer of undertaking last year, business is slow now, what happens if I am made redundant?

Under the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003, your new employer is legally obliged to take on the existing employees of the business. The terms and conditions and your employer’s obligations in your contract of employment are automatically transferred to your new employer. Neither the previous nor the new employer can use the fact of the sale as a justification for dismissing employees unless there are valid economic, technical, or organisational grounds justifying changes in the workforce. Dismissal on economic, technical, or organisational grounds is a redundancy and, if you qualify, you may be entitled to a redundancy lump sum. If you are made redundant, continuous service is based on service with your new employer and your previous employer.

I have been working on a fixed-term contract for the last 2 years. Am I entitled to a redundancy payment when my contract ends?

If you are employed under a fixed-term contract, and you have worked continuously for your employer for at least 104 weeks when your contract ends, you may qualify for a redundancy payment.

I am a seasonal worker, how do I qualify for redundancy ? Does the 104 weeks apply to my time off ?

If you are a seasonal worker who has at least 104 weeks service with your employer you may qualify for redundancy. The 104 weeks does not include the time you are off work. The question of redundancy does not arise until the usual time when your seasonal work would start. If you are not re-employed then, you may be entitled to a redundancy payment.

Is an apprentice entitled to a redundancy payment?

An apprentice who is made redundant during the apprenticeship may qualify for a redundancy payment provided they meet the conditions such as 2 years' service over the age of 16. However an apprentice who is dismissed within one month of the end of the apprenticeship will not qualify for a redundancy payment.

If an apprentice is kept on as an employee for more than a month after the apprenticeship ended and is subsequently made redundant, the time spent as an apprentice aged over 16 will count in the redundancy payment calculation.

If my employer does not offer the 30 day consultation process in the case of a collective redundancy what can I do about it ?

Collective redundancies come under the Protection of Employment Acts 1977-2007, which requires that both the Minister for Social Protection and employees’ representatives should be consulted at least 30 days before being given notice of redundancy. If your employer has not complied with the requirement for a 30-day consultation process you may make a complaint to the Workplace Relations Commission that your employer has contravened Section 9 or 10 of the 1977 Act in relation to information and consultation of employees.

If I am made redundant and I then get an offer of work from my previous employer, will this affect my redundancy payment?

If your employer offers you alternative work, you may lose your entitlement to a redundancy payment in the following circumstances:

  • If you accept a new contract or re-engagement with immediate effect and the terms do not differ from those of the previous contract
  • If your employer makes you a reasonable offer of alternative work, and you refuse it
  • If you accept an offer in writing from your employer for a new and different contract which will take effect within 4 weeks of the ending of the previous contract. Equally, if you refuse such an offer unreasonably, you may lose your right to a redundancy payment.

You can read more information about alternative work in our document on redundancy procedures.

Page edited: 6 July 2021