Case study: Calculating redundancy payment
Linda started her current job on 1 February 2005. She was given notice of redundancy on 6 July 2012 and her job ended on 31 August 2012. She was laid off from 6 to 10 June 2012. Her gross weekly pay (that is, her weekly pay before tax and other deductions) was €800. Linda wants to know how much her redundancy payment will be.
The current ceiling on wages that count for redundancy purposes is €600 per week. Linda's total service is 7 years and 212 days. She had no breaks in her continuity of employment. However, the 5 days laid off in June 2012 will reduce her reckonable service to 7 years and 207 days. 207 days is 57% (56.71%) of a full year.
Allowing 2 weeks for each year of service and for part of a year on a pro-rata basis, Linda will be entitled to 16.14 weeks (2 weeks x 7.57 years = 15.14, plus a bonus week). This will give Linda a redundancy payment of 16.14 x €600 = €9,684.