Redundancy procedures

Introduction

Employers must follow certain processes when an employee is made redundant. Redundancy occurs where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff. The Redundancy Payments Acts 1967–2014 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer. Not all employees are entitled to this statutory redundancy payment, even where a redundancy situation exists. You can read our document on qualifying for redundancy.

Employer rebate abolition: There is no statutory redundancy employer rebate where the date of dismissal due to redundancy is on or after 1 January 2013.

Rules

In addition to the provisions in the legislation as regards collective redundancies your employer must follow certain fair procedures. These include giving you at least 2 weeks' notice and paying your redundancy payment on the date of dismissal. There are also various procedures when selecting people for redundancy, alternative work and time off.

Selection for redundancy

When selecting a particular employee for redundancy, an employer should apply selection criteria that are reasonable and are applied in a fair manner. You are entitled to bring a claim for unfair dismissal if you feel you were unfairly selected for redundancy or consider that a genuine redundancy situation did not exist. Examples of these situations might include where the custom and practice in your workplace has been last in, first out and your selection did not follow this procedure. Another example may be where your contract of employment sets out criteria for selection which were not followed.

Under the unfair dismissals legislation, selection for redundancy based on certain specific grounds is considered unfair. These include redundancy as the result of an employee's trade union activity, pregnancy or religious or political opinions. The employment equality legislation also prohibits selection for redundancy that is based on any of the following 9 grounds: gender, civil status, family status, age, disability, religious belief, race, sexual orientation or membership of the Traveller community.

Alternative work

As with any dismissal, an employer must act reasonably when dismissing an employee in a redundancy situation. This means that your employer must consult with you before the decision is made. In addition, your employer should consider all options including possible alternatives.

If your employer makes you a reasonable offer of alternative work, and you refuse it, you may lose your entitlement to a redundancy payment. Generally, alternatives which involve a loss of status or worsening of the terms and conditions of your employment would not be considered reasonable. Similarly, you may be justified in refusing an offer that involves you travelling an unreasonable distance to work.

You may take up an alternative on trial for up to 4 weeks. If the alternative involves a reduction of 50% or more in hours or pay, working under the new arrangements for up to 52 weeks will not count as an acceptance.

If you accept a new contract or re-engagement with immediate effect and the terms do not differ from those of the previous contract, you will not be entitled to claim redundancy. This also applies if you refuse such an offer unreasonably.

If you accept an offer in writing from your employer for a new and different contract which will start within 4 weeks of your previous contract ending, you will not be entitled to claim redundancy. Equally, if you refuse such an offer unreasonably, you will lose your right to a redundancy payment.

Your justifiable refusal of an offer of alternative work, followed by dismissal, may, depending on the circumstances, entitle you to look for statutory redundancy or make a claim for unfair dismissal.

Any offer of alternative work should be given to you in writing and you are entitled to full information concerning the details of the offer.

Notice from the employer

You are entitled to a minimum of 2 weeks' written notice of redundancy. This notice period goes up depending on the period of service.

Period of service Notice required
Between 2-5 years 2 weeks
Between 5-10 years 4 weeks
Between 10-15 years 6 weeks
Over 15 years 8 weeks

Notice when on lay-off or short time: If you have been laid off or put on short-time work, this means that your contract of employment is temporarily suspended. If your employer then decides to make you redundant, they must re-activate your contract in order to dismiss you on grounds of redundancy. When your employer gives notice of redundancy you are entitled to the full notice period. If you are made redundant and you are 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.

For example, if you have been on short-time work and your employer then makes you redundant your payment in lieu of notice is based on the hours of work in your contract of employment, not on the short-time hours of work.

Time off

If you are being made redundant, you are entitled to reasonable paid time off in order to look for a new job. This right is set down in law in Section 7 of the Redundancy Payments Act 1979. (You should note that while the Redundancy Acts have been amended a number of times the provisions as set down in 1979 for time off still remain.

Holidays

You are entitled to any holidays that are outstanding or payment in lieu of holidays.

Leaving before your notice expires

Between receiving your notice of redundancy and the date your employment ends, you may give your employer notice that you wish to leave before the end of your notice period. You do this by completing form RP6 (pdf) and giving it to your employer. Your employer can decide whether or not to allow your request. You should note that leaving during the notice period without your employer's agreement may affect your entitlement to a redundancy payment.

Social welfare payments

When you lose your job you should register as unemployed by signing on with your local Intreo Centre or Social Welfare Branch Office. If you have enough social insurance contributions you may be entitled to Jobseeker’s Benefit. If you do not have enough PRSI contributions you may qualify for Jobseeker’s Allowance which is a means-tested benefit.

How to apply

Your employer must give you at least 2 weeks' written notice of the redundancy. On the date of the termination of employment your employer should pay the redundancy lump sum due to you.

If your employer is paying you the redundancy lump sum, they do not have to submit an online application form (previously the RP50 form). However, your employer should get proof that they paid your lump sum to you and give you a copy of the proof of payment.

If your employer has not paid your redundancy lump sum, you should apply to your employer for it using form RP 77 (pdf).

If your employer is unable to pay your redundancy lump sum, they should follow the steps below:

  1. Log on to the new Welfare Partners service. To access the service, the employer will need a Department of Social Protection Sub-Cert from Revenue (pdf).
  2. Complete and submit an online application form (previously the RP50 form)
  3. Download the completed Employee Declaration Form and send it to the employee by either email or post.
  4. Upload confirmation from the employee that the Employee Declaration Form is correct. This should be a physical or digital signature or an email from the employee confirming the information is correct.
  5. Upload the ‘Required’ documents and ‘Optional’ documents.
  6. Review the declaration in the ‘Application summary’ and ‘Submit application’.

Employers can get detailed information on how to access Welfare Partners and use this service in the Employers Guide (pdf).

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 (WRC).

You must complete the following steps:

  1. Complete and submit the online complaint form available on workplacerelations.ie. This must be done within one year of your dismissal.
  2. If the WRC has made an award, apply to the DSP for your lump sum. Email redundancypayments@welfare.ie to request an application form (RP50).
  3. Complete the RP50 form and sign it.
  4. Send the signed RP50 form to the Redundancy and Insolvency Section of the DSP along with a copy of the Workplace Relations Commission decision. (Claims accompanied by a Workplace decision must be submitted within 52 weeks of a decision being made).

Insolvency: If the company has been liquidated or is in receivership, the liquidator or receiver should complete and submit an online application on behalf of the employees. They do this using the new Welfare Partners service. There is detailed information on how to access Welfare Partners and use this service in the Employer Representative Guide (pdf).

For more information you can read this list of frequently asked questions about redundancy.

Where to apply

The application for payment from the Social Insurance Fund should be sent to:

Redundancy Payments Section

Department of Social Protection

Ground Floor
Gandon House
Amiens Street
Dublin 1
D01 A361

Tel: (01) 673 4500 or 0818 800 699

For further information about the Redundancy Payments Scheme contact:

Workplace Relations Commission - Information and Customer Service

O'Brien Road
Carlow
R93 E920

Opening Hours: Mon. to Fri. 9.30am to 1pm, 2pm to 5pm
Tel: (059) 917 8990
Locall: 1890 80 80 90

Page edited: 29 April 2019