Redundancy generally 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
reason could be the financial position of the firm, lack of work,
reorganisation within the firm or it may be closing down completely.
Redundancy can occur where one of the following things happen:
- Your employer ceases to carry on business or ceases to carry on business
in the place where you have been employed. (For example, if the firm moves
location, this can be a substantial change in your working conditions and
may therefore be a reason for redundancy. However if there is a change of
ownership under the transfer
of undertaking legislation where employees are re-employed with no
change to their working conditions then it is not a redundancy situation.)
- Your employer's requirements for employees in your category has ceased or
- Your employer has decided to carry on the business with fewer or no
staff. In deciding whether your employer is continuing the business with
fewer or no staff, close members of your employer's family are not taken
- Your employer has decided to let your work be done in a different manner
in future and you are not sufficiently qualified or trained to do the work
in the different way
- Your employer has decided that your work will in future be done by
another person who can do other work as well and you are not sufficiently
qualified or trained to do that other work.
When a number of employees are being made redundant within a 30-day period
this is known as a collective redundancy.
Sometimes there is a voluntary redundancy situation. This is when
an employer needs to reduce the workforce and asks for some employees to
volunteer for redundancy.
In some cases when you have been in a lay off or short-time
working situation for a certain length of time you may be entitled to claim
Payments Acts 1967–2014 provide a minimum entitlement to a redundancy
payment for employees with 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 find out more details about qualifying for redundancy here.
However, you and your employer may agree a redundancy payment above this
statutory minimum and in such circumstances, employees who have not reached the
statutory minimum period of service may also receive a payment.
If you are being made redundant the legislation specifies what notice must
be given to you and what application forms must be completed - find out more
If you are entitled to a redundancy payment there are specific rules about
how your continuity of service is assessed and how the payment is calculated -
you can find out more about redundancy payments here.
There is also a list of frequently
asked questions about redundancy.
For further information about the Redundancy Payments Scheme contact the
Workplace Relations Commission's Information
and Customer Service. Information about social welfare in relation to
redundancy can be found on the
Irish National Organisation of the Unemployed (INOU)'s website