Page 55 - Workplace Relations Guide to Employment Law

It is strongly recommended that employers/ not pay the lump sum, the employee can apply
employees/liquidators, etc. use this to the Department of Employment Affairs and
redundancy calculation facility for accuracy Social Protection for direct payment from the
and speed of calculation. Social Insurance Fund as follows:

Note that any non-reckonable service only 4 If the employer is unable to pay the
arises in the last 3 years of employment. All redundancy lump sum, the employer
other service up to this final 3 year period is, should complete and sign the RP50.
therefore, fully reckonable for redundancy They should also submit a letter from
calculation purposes. Also, “excess” days an accountant or solicitor stating that
(periods less than a full year) are credited as they are unable to pay and accepting
a proportion of a year. liability for 100% of the lump
sum (85% for a dismissal in 2012)
The Redundancy Payments Acts, 1967 to 2014 owing to the Social Insurance Fund.
further provide that the lump-sum must be Documentary evidence such as audited
paid by the employer direct to the employee. accounts should also be included.
An employer may decide to make a payment in
excess of the statutory requirement to employees 4 If the employer refuses to pay the
– this is entirely a matter for the employer. The redundancy lump sum or if there
Department of Employment Affairs and Social is a dispute about redundancy the
Protection’s role relates exclusively to the employee may present a complaint to
payment of the statutory entitlement. the Workplace Relations Commission
(WRC). This must be done in the normal
course within one year of the date of
It should be noted that statutory redundancy termination of employment. Then the
employer rebates do not apply where the employee may apply for the lump sum
date of dismissal due to redundancy is on by sending a completed form RP50
or after 1st January 2013. Where the date
of dismissal occurred in 2012 the employer to the Redundancy Payments Section
rebate is 15%. If the date of dismissal was in of the Department of Employment
2011 or earlier the employer rebate is 60%. Affairs and Social Protection together
with a favourable decision from a WRC
Adjudication Officer.
Employers must give at least 2 weeks’ written
notice of redundancies. On the date of the
termination of employment the employer
should pay the redundancy lump sum due.
Collective Redundancies
Information for employers on making a
redundancy claim using the online facility The Protection of Employment Acts 1977
(Form RP50) is available on www.welfare.ie. to 2014 provide that, where employers
are planning collective redundancies,
they are obliged to supply the employees’
If an employer has not paid a redundancy lump
sum, the employee should apply to his/her representatives with specific information
employer using form RP 77 (pdf), also available regarding the proposed redundancies and to
on www.welfare.ie. If the employer still does consult with those representatives at least

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