How Much Redundancy Payment Am I Entitled To? Ireland: Your Legal Rights

Redundancy can be a stressful and uncertain time for employees in Ireland. If your job is made redundant, it’s important to understand your legal entitlements to redundancy payment. This article explains how redundancy payments work in Ireland, how to calculate your entitlement, and your rights under Irish employment law.

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What Is Redundancy?

How much redundancy payment am I entitled to? Redundancy occurs when an employer needs to reduce their workforce because a job or position is no longer necessary. This can happen due to business closure, restructuring, automation, or financial difficulties.

Importantly, redundancy is different from dismissal due to performance or misconduct. Redundancy is related to the job position, not the employee’s actions.

Am I Eligible for Redundancy Payment in Ireland?

To qualify for statutory redundancy payment, you must:

Be an employee under a contract of employment.
Have at least 2 years’ continuous service with your employer.
Be made redundant, or your job is genuinely no longer needed.
Not have resigned voluntarily (unless it was due to constructive dismissal linked to redundancy).

What Are Your Legal Rights Regarding Redundancy?

Under the Redundancy Payments Acts 1967-2014, employees are entitled to:

A statutory redundancy payment based on length of service and weekly pay.
Notice of redundancy (or payment in lieu of notice).
Fair procedures in redundancy selection.
Option to challenge unfair redundancy through the Workplace Relations Commission (WRC).

How Is Redundancy Payment Calculated?

The statutory redundancy payment in Ireland is calculated as follows:

2 weeks’ pay for every year of continuous service.
Plus 1 week’s pay as a bonus.
Based on your normal weekly earnings, up to a maximum of €600 per week (as of 2025).

Example Calculation

Suppose you worked for your employer for 5 years and earned €550 per week:

2 weeks’ pay × 5 years = 10 weeks’ pay
Plus 1 extra week’s pay
Total = 11 weeks’ pay × €550 = €6,050 redundancy payment

What Counts as “Continuous Service”?

Continuous service means the length of time you have worked for your employer without a break. The following count towards continuous service:

Full-time, part-time, or fixed-term contracts (if consecutive).
Periods of sick leave or maternity leave.
Approved leave such as jury duty.

However, breaks longer than 26 weeks typically interrupt continuous service.

What If My Weekly Earnings Exceed the Maximum Limit?

If you earn more than the €600 weekly cap, redundancy payment calculations will use €600 as the maximum weekly pay for statutory purposes. However, some employers offer enhanced redundancy packages that pay above this statutory amount.

Can I Get Redundancy Payment if I Am on a Temporary or Fixed-Term Contract?

Yes, if your contract is ending due to redundancy and you have worked continuously for 2 years or more, you may be entitled to redundancy payment. The nature of your contract (temporary or fixed-term) does not exclude you.

Are There Other Types of Redundancy Payments?

1. Enhanced Redundancy Payments

Some employers offer enhanced redundancy packages that are more generous than the statutory minimum. These can include:

Higher weekly pay caps.
More weeks’ pay per year of service.
Additional lump sum payments.

Check your contract or company policy for details.

2. Redundancy Payment from the Department of Social Protection

If your employer cannot pay your redundancy, you may be able to claim a Redundancy Payment Scheme from the Department of Social Protection, subject to eligibility.

Notice Period and Redundancy

When made redundant, you are entitled to a notice period or payment in lieu of notice, based on how long you worked for your employer:

Length of Service	Minimum Notice Period
Up to 13 weeks	1 week
13 weeks to less than 2 years	2 weeks
2 years to less than 5 years	4 weeks
5 years to less than 10 years	6 weeks
10 years or more	8 weeks

Your employer must give this notice or compensate you accordingly.

What If I Think My Redundancy Is Unfair?

If you believe your redundancy was unfair or the selection process was biased, you can:

Raise a complaint with your employer first.
Apply to the Workplace Relations Commission (WRC) for a hearing.
Claim unfair dismissal if you think the redundancy was a cover for dismissal.

Tax Treatment of Redundancy Payments in Ireland

Statutory redundancy payments are tax-free up to certain limits. Amounts above these limits may be subject to income tax, USC, and PRSI. Always check the latest Revenue guidelines or consult a tax advisor.

Steps to Take If You Are Facing Redundancy

Request a written redundancy notice and explanation.
Check your contract for any enhanced redundancy terms.
Calculate your statutory redundancy payment entitlement.
Ask your employer about notice periods and payments in lieu.
Seek legal advice if you think the redundancy is unfair.
Contact the Workplace Relations Commission if needed.

Frequently Asked Questions (FAQs)

How long do I need to work to get redundancy pay in Ireland?

You must have at least 2 years of continuous service with your employer.

Can I refuse redundancy and keep my job?

If the redundancy is genuine, your employer is not obliged to keep your job.

What happens if my employer goes bankrupt?

You can apply for redundancy payment from the Redundancy Payments Scheme via the Department of Social Protection.

Can I get redundancy pay if I resign?

Usually, no. Unless it’s constructive dismissal related to redundancy.

Conclusion: Know Your Redundancy Rights

Understanding your redundancy rights in Ireland empowers you to protect your financial security during uncertain times. Calculate your entitlement carefully, check your contract, and don’t hesitate to seek legal advice if you believe your rights have been violated.