Oct 2017
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A redundancy situation can often arise in the following situations:
In the event of a redundancy, employees are covered under Redundancy Payments Acts 1967-2014, if they meet the following requirements:
How to calculate Statutory Redundancy Pay
Statutory Redundancy is payable at a rate of:
The term ‘pay’ refers to the employee’s current normal gross weekly pay, including average regular overtime and benefits in kind. The above, however, is based on a maximum earnings limit of €600 per week (before PAYE, PRSI & USC).
An employer may also choose to pay a redundancy payment above the statutory minimum. In such circumstances, the statutory payment element will be tax free but some of the lump sum payment may be taxable.