What can happen in Redundancy situations is that an employer makes the employee redundant, and the employee has confidence that the lump sum requirement will be paid by the employer around this time.
Then consultations between the former employee and employer take place over a period of time with promises of payment being make, until eventually the employee realises they are not going to be paid their statutory lump sum entitlement, and they then consider legal action.
Right to Redundancy
An employee’s right to redundancy stems from S.7 of the Redundancy Payments Act 1967 which states:
An employee, if he/she is dismissed by his employer by reason of redundancy or is laid off or kept on short-time for the minimum period, shall, subject to this Act, be entitled to the payment of moneys which shall be known (and are in this Act referred to) as redundancy payment provided—
( a) he has been employed for the requisite period, and
( b) he was an employed contributor in employment which was insurable for all benefits under the Social Welfare Acts, 1952 to 1966.
Lump Sum Payment Obligation
If an employee is dismissed and the reason for the dismissal is redundancy then the employee has a right to a lump sum payment provided they have two years continuous service completed. An employee is entitled to two weeks statutory redundancy payment for every year of service, plus a bonus week.
Disclaimer for This Redundancy Law Article
Please be advised that the above-mentioned material is intended as an overview and as a broad out-line of the topic discussed. It should not be considered as complete and comprehensive legal advice, nor act as an appropriate substitute. Legal advice should be sought from a solicitor prior to relying on anything in this article.
Due care has been taken in the publication of this article and we do not accept legal liability as a result of reliance on any material covered in the above article.