Understanding your statutory redundancy entitlement is crucial when facing job loss. Under the Redundancy Payments Acts 1967-2014, if you have at least 104 weeks (2 years) of continuous service with your employer, you are entitled to a statutory redundancy payment. This is a legal right - not a discretionary payment or an act of generosity by your employer.
Richard O'Shea Solicitor ensures you receive every euro you're entitled to under Irish redundancy law. Whether your employer is disputing your entitlement, has calculated your payment incorrectly, or has become insolvent, Richard provides expert guidance to secure your statutory redundancy rights.
Qualifying for Statutory Redundancy
To qualify for statutory redundancy payment in Ireland, you must meet the following conditions:
Qualifying Conditions
1. Length of Service
You must have at least 104 weeks (2 years) of continuous service with your employer. Service is continuous even if you had short breaks (less than 26 weeks) or if you transferred under TUPE regulations.
2. Age
You must be aged 16 or over. There is no upper age limit for statutory redundancy (the previous age 66 limit was removed).
3. PRSI Contributions
You must be in insurable employment under the Social Welfare Acts. This means your employer was paying PRSI contributions on your behalf. Most employees qualify, but some exceptions apply (see below).
4. Genuine Redundancy
Your dismissal must be due to genuine redundancy - meaning the requirement for employees to do work of a particular kind has diminished or ceased. Learn more about redundancy vs dismissal.
How to Calculate Your Statutory Redundancy Payment
The statutory redundancy payment formula under Irish law is straightforward but must be calculated correctly to ensure you receive your full entitlement.
The Statutory Redundancy Formula
2 weeks' pay × years of service + 1 bonus week
Subject to a maximum of €600 per week
Worked Examples
Example 1: Basic Calculation
Scenario: 5 years of service, weekly pay €500
Calculation: (2 weeks × 5 years) + 1 week = 11 weeks
Payment: 11 × €500 = €5,500
Example 2: Above the €600 Cap
Scenario: 10 years of service, weekly pay €1,200
Calculation: (2 weeks × 10 years) + 1 week = 21 weeks
Pay capped at €600: 21 × €600 = €12,600
(Not 21 × €1,200 = €25,200)
Example 3: Long Service
Scenario: 20 years of service, weekly pay €800 (capped at €600)
Calculation: (2 weeks × 20 years) + 1 week = 41 weeks
Payment: 41 × €600 = €24,600
What Counts as "Normal Weekly Pay"?
Your "normal weekly pay" for redundancy calculation purposes includes:
✓ INCLUDED in Normal Weekly Pay
- Basic salary or hourly wage
- Regular shift allowances
- Regular bonuses (if contractual and paid regularly)
- Regular overtime (if part of normal working pattern)
- Commission (averaged over previous year)
- Regular allowances (e.g., car allowance if contractual)
✗ EXCLUDED from Normal Weekly Pay
- One-off bonuses (Christmas bonus, performance bonus)
- Occasional overtime (not part of regular pattern)
- Expense reimbursements
- Employer pension contributions
- Benefits in kind (company car, health insurance)
If there's any dispute about what should be included in your weekly pay calculation, Richard O'Shea Solicitor can review your employment contract, payslips, and working pattern to ensure the correct figure is used.
The €600 Weekly Pay Cap
A critical limitation in the statutory redundancy calculation is the €600 weekly pay cap. No matter how high your actual weekly earnings, for statutory redundancy purposes, your pay is capped at €600 per week.
💡 The Cap's Impact
If you earn €1,500 per week, your statutory redundancy is still calculated using only €600 per week. This means higher earners often receive proportionally less redundancy relative to their salary. This is where enhanced redundancy packages become important.
Many employers, particularly larger companies, offer enhanced redundancy packages that go beyond the statutory minimum. Richard O'Shea Solicitor can negotiate enhanced packages that better reflect your actual earnings and years of service.
Who Is Excluded from Statutory Redundancy?
While most employees qualify for statutory redundancy, certain categories are excluded:
- Civil servants and public sector pension scheme members - they have separate redundancy arrangements
- Apprentices - during their apprenticeship period
- Members of the Defence Forces and Gardaí - covered by separate schemes
- Close relatives of the employer - in certain family business situations
- Employees with less than 104 weeks service
- Certain casual workers - if no regular pattern of employment exists
If you're unsure whether you qualify, Richard O'Shea Solicitor can assess your employment status and advise on your entitlements.
Claiming Your Statutory Redundancy Payment
The process for claiming your statutory redundancy payment depends on your employer's financial situation.
Scenario 1: Solvent Employer
If your employer is financially solvent, they should pay your statutory redundancy directly. The process is:
- Employer completes form RP50 (Notice of Redundancy to the Minister)
- Employer pays you the statutory redundancy amount
- Employer claims 60% rebate from the Social Insurance Fund using form RP77
- You retain the full statutory payment; employer recoups 60% from the State
Scenario 2: Insolvent Employer or Non-Payment
If your employer is insolvent, refuses to pay, or has gone out of business, you can claim directly from the Social Insurance Fund. Learn more about claiming from the Social Insurance Fund.
⚠️ Time Limit Warning
You must claim your redundancy payment within 52 weeks of your dismissal date. Don't delay - contact Richard O'Shea Solicitor immediately to ensure your claim is submitted correctly and on time.
Statutory vs Enhanced Redundancy Packages
It's crucial to understand the difference between statutory redundancy (your legal minimum) and enhanced redundancy packages that many employers offer:
Statutory Redundancy
- Legal minimum
- 2 weeks per year + 1 week
- €600 weekly cap
- Tax-free up to €10,160
- Cannot be reduced
Enhanced Package
- Above statutory minimum
- Often 3-4 weeks per year
- No weekly cap
- More favorable tax treatment
- Negotiable with employer
Richard O'Shea Solicitor negotiates enhanced redundancy packages that go beyond the statutory minimum, particularly for long-serving employees or where selection has been questionable.
Common Errors in Redundancy Calculations
Through his extensive experience, Richard O'Shea Solicitor frequently identifies these calculation errors:
❌ Incorrect Service Calculation
Employer fails to include previous service with related companies or TUPE transferred service.
❌ Wrong Weekly Pay Figure
Employer excludes regular overtime, shift allowances, or commission that should be included in the calculation.
❌ Missing Bonus Week
Employer calculates 2 weeks per year but forgets the +1 bonus week.
❌ Deducting Notice Pay
Employer incorrectly deducts notice period pay from redundancy payment (these are separate entitlements).
If you believe your redundancy has been calculated incorrectly, bring your payslips and redundancy calculation to Richard O'Shea Solicitor for immediate review.
How Richard O'Shea Solicitor Can Help
Richard O'Shea Solicitor provides comprehensive support to ensure you receive your full statutory redundancy entitlement:
Calculation Verification
Review your employer's redundancy calculation to ensure accuracy, identifying any underpayments or excluded entitlements.
Service Disputes
Challenge employer disputes about your length of service, ensuring all qualifying service is correctly counted.
Enhanced Package Negotiation
Negotiate enhanced redundancy packages that go beyond the statutory minimum, particularly for higher earners affected by the €600 cap.
Social Insurance Fund Claims
Assist with claiming directly from the Social Insurance Fund when employers are insolvent or refuse to pay. See our guide on redundancy payment claims.
Ensure You Receive Your Full Redundancy Entitlement
Get expert advice from Richard O'Shea Solicitor. We'll verify your calculation, challenge any underpayment, and negotiate enhanced packages where appropriate.
Expert Calculation Review