Whilst the rate of unemployment in the country has slowed down, the number of people claiming unemployment benefit continues to rise and employers need to ensure that they are aware of their obligations under the current legislation.
What are the requirements for employees to be entitled to redundancy?
An employee must:
- have worked continuously for 104 weeks/2 years
- be in employment, which is insurable under the Social Welfare Acts
- be over the age of 16
- have been made redundant as a result of a genuine redundancy situation
What is an employee entitled to?
- 2 weeks pay for every year of service, plus a bonus week added on, subject to a ceiling of their weekly gross pay (€600)
What is an employer entitled to?
The Dept of Enterprise, Trade & Employment, will then pay the employer a 60% rebate subject to the completed forms being submitted, specifically the RP50.
Where the employer is unable or fails to pay a lump sum, the Department steps in and pays the amount from the Social Insurance Fund (SIF).
What Notice Periods apply for Redundancies?
Under the Minimum Notice & Terms of Employment Acts 1973-2001 the following notice applies.For service of between:
13 weeks to 2 years – 1 weeks notice
2 and 5 years – 2 weeks notice
5 and 10 years – 4 weeks notice
10 and 15 years – 6 weeks notice
Over 15 years – 8 weeks notice
Under the Redundancy Payments Act, a minimum of 2 weeks notice is required. Employers should check employee contracts as there should be agreed terms and conditions in the contacts. The greater of the statutory and contractual notice must be given to the employee.