Redundancy Pay
Written in plain language for general understanding. This is educational content, not legal advice. Based on Irish Acts of the Oireachtas, statutory instruments, and official guidance.
What is this right?
If your job genuinely disappears — because the business is closing, your workplace is shutting, or fewer workers are needed — you are entitled to statutory redundancy pay.
The formula is:
- Two weeks' pay for every year of service (based on gross weekly pay, capped at €600 per week)
- Plus one additional week's pay (also capped at €600)
For example, 10 years of service at €600/week = (10 × 2 × €600) + €600 = €12,600.
Statutory redundancy is tax-free. Any extra payment above statutory is also tax-free up to certain limits (the Standard Capital Superannuation Benefit formula or €10,160 + €765 per year of service).
When does it apply?
- You have been continuously employed for at least 2 years (104 weeks) and are aged 16 or over.
- You are an employee paying PRSI (Class A contributions).
- The redundancy is genuine — the job itself must be disappearing, not just being given to someone else.
- If you are offered suitable alternative work and unreasonably refuse it, you may lose your entitlement.
- Part-time employees are covered — there is no minimum hours threshold.
What should you do?
- Your employer must give you at least 2 weeks' notice of redundancy (more if your contract provides for it).
- You should receive form RP50 — this is the redundancy payment certificate. Check it carefully.
- If your employer cannot pay, you can apply to the Department of Social Protection, which will pay from the Social Insurance Fund and recover from the employer.
- You are entitled to reasonable time off to look for new work or arrange training during your notice period.
- If you believe the redundancy is not genuine, you can bring an unfair dismissal claim to the WRC.
What should you NOT do?
- Don't accept a "redundancy" if the job still exists — if your employer replaces you, it may be unfair dismissal, not redundancy.
- Don't sign a waiver of rights without independent legal advice — you cannot contract out of statutory redundancy.
- Don't unreasonably refuse suitable alternative work — you have a 4-week trial period in the new role. If you turn it down without trying it, you may lose your redundancy payment.
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