Redundancy in Ireland happens when an employer lets a worker go because their job no longer exists. This might be due to company downsizing, closing, or changes in the way work is done. The Redundancy Payments Acts 1967–2014 outline the rights of employees in such situations. Here’s a simplified explanation:

1. What is Redundancy?

Redundancy occurs when an employee’s job is no longer needed for reasons like:

• The business closes or moves location.
• The employer cuts staff due to financial difficulties.
• New technology replaces the need for a certain job.
• Work requirements have changed, so fewer employees are needed.

2. Eligibility for Redundancy Pay

To qualify for a redundancy payment, the employee must meet the following conditions:

• Must have worked for the employer for at least 2 years (104 weeks of continuous service).
• Must be in insurable employment under the Social Welfare Acts.
• Must be made redundant, not dismissed for misconduct or other reasons.

3. Redundancy Payments

If eligible, the employee will receive a statutory redundancy payment. This payment is calculated based on the employee’s age, length of service, and weekly pay:

• Two weeks’ pay for every year of service.
• One extra week’s pay as a bonus.
• The weekly pay is capped at a maximum of €600 per week for redundancy purposes.

4. How to Calculate Redundancy

Example:

• If someone has worked for 5 years and their weekly pay is €500:
  • 5 years x 2 weeks = 10 weeks’ pay.
  • Plus 1 extra week = 11 weeks’ pay.
  • 11 weeks x €500 = €5,500 statutory redundancy payment.

5. Notice Period

• Employees must be given at least 2 weeks’ notice before being made redundant. Depending on how long they have worked for the company, the notice period might be longer.

6. Alternative Employment

• Employers may offer alternative work within the company to avoid redundancy. If the employee refuses reasonable alternative work, they might not qualify for redundancy pay.

7. Collective Redundancies

• If 5 or more employees are being made redundant at the same time (in large companies, this number might be higher), the employer must follow extra procedures called collective redundancies. This includes informing employee representatives or trade unions and notifying the Minister for Employment Affairs and Social Protection.

8. Employee Rights

• Employees have the right to claim redundancy pay if they are eligible and must be treated fairly during the redundancy process.
• If employees believe they were unfairly selected for redundancy (for example, based on age, gender, or being in a trade union), they can bring a complaint to the Workplace Relations Commission.

9. Exceptions

• Some employees are not entitled to redundancy pay, including:
  • Employees with less than 2 years of service.
  • Those dismissed for gross misconduct.
  • Members of the Gardaí, Defence Forces, or civil servants in certain cases.

10. Claiming Redundancy

• Employees who are not paid their redundancy entitlement can apply to the Redundancy Payments Scheme. The government may pay the redundancy directly to the employee, and then recover the money from the employer.

In Summary:

• The Redundancy Payments Acts protect employees when their job is no longer available.
• Eligible employees receive statutory redundancy pay, which is based on their service and pay.
• Employers must give notice and may offer alternative work.
• Employees have the right to claim their redundancy and can challenge unfair dismissals related to redundancy.

This law ensures workers are financially compensated if they lose their job due to redundancy.