Redundancy Following Lay-off
Redundancy following a layoff, particularly in Ireland, occurs when a temporary layoff (4+ consecutive weeks or 6 in 13) becomes permanent, allowing an employee to claim statutory redundancy pay by giving written notice.
To qualify, you generally need 104 weeks of continuous service, though COVID-19 legislation temporarily altered rules. Claiming redundancy means you’re ending your contract, potentially forfeiting notice pay, but you can get a lump sum based on your pay and service, with specific rules around reckonable service.
Key Steps & Considerations
Check Eligibility:
- Continuous Service: Need at least 104 weeks with the employer.
- Layoff Period: Must have been on layoff for 4+ consecutive weeks or 6 weeks in the last 13.
- COVID-19 Impact: Specific emergency laws paused this right for a period;
Give Written Notice:
- Send a formal notice (often on Form RP9) to your employer stating your intention to claim redundancy.
- This must be within four weeks of the layoff/short-time ending.
Employer Response:
- If the employer doesn’t reply within 7 days, they’re deemed to agree to the redundancy.
- They can issue a counter-notice if they believe work is available within 4 weeks or for at least 13 weeks, preventing your claim.
Impact on Notice:
- Claiming redundancy means you’re ending the contract, so you generally lose your right to statutory notice pay.
Financial & Social Welfare:
- You can claim redundancy even if receiving a jobseeker’s payment.
- Register as unemployed and check for tax refunds or PRSI credits.
Statutory Payment:
- Calculation depends on your weekly pay (up to a limit) and years of service, with specific rules on what counts as reckonable service.
- The maximum statutory redundancy payment is capped at €600 per week.