REDUNDANCY INFO

Independent Information on Redundancy in Ireland

Text Box: If An Employer Won’t Pay Redundancy 

Laid out here is how employees should make an application to the Department of Enterprise, Trade and Employment (Redundancy Payments Section) for settlement in situations where their employer is unable or unwilling to pay the statutory redundancy payment due to them. When this happens, the Department steps in and pays the money to the employee from the Social Insurance Fund (SIF). 

In order to start this process off, the right of the employee to the payment must be established. To this end, the department requires either by a completed Redundancy Certificate (RP50 – Part B) or - in the absence of that - a decision of the Employment Appeals Tribunal (EAT) following an appeal from the employee. 

The following comprehensive all-in-one form must be submitted to the Department, either by the Liquidator/Receiver on behalf of the employees in a liquidation/receivership situation or otherwise by the employee (s) themselves:

* RP50 - incorporating Notification of Redundancy (Part A) – this should be submitted if available.

* Redundancy Certificate (Part B) - with both employer (or liquidator/receiver in a liquidation/receivership situation), and employee giving written confirmation that no redundancy was paid, although it was owed to the employee; or, failing this, copy of an EAT Decision in the employees favour. (Also see note on Form RP77 below).

* Employee Lump Sum Claim from the Social Insurance Fund (also in Part B)

Form RP50 can be submitted electronically at the Department’s website at: http://www.entemp.ie and is downloadable at that address. The form is also available from the Employment Rights Information Section of the Department, which can also answer enquiries on redundancy matters that people may have.

Although, as with the case of an employer rebate, a signed hardcopy version of Form RP50 must also be submitted for verification purposes, before it becomes a valid claim, an electronic application is capable of being processed faster that a hard-copy only version and is accordingly recommended to anybody making an application.

Before formally applying for a statutory redundancy payment, an employee should first have taken all reasonable steps (short of actual legal proceedings) to secure payment from the employer. This includes a written application to the employer. Form RP77 can be used for this purpose. This form can be accessed from the Department’s website at http://www.entemp.ie It can also be obtained in hardcopy from Employment Rights Information Section of the Department.

In the event of a dispute between the employer and the employee concerning the employee’s right to a lump sum, the employee may decide to bring the matter to the Employment Appeals Tribunal (EAT) for adjudication. The Tribunal holds sittings in various locations throughout the country and is an informal, inexpensive and efficient avenue for adjudicating on disputes regarding statutory redundancy entitlements.

If the Tribunal rules in favour of an employee, and if the employer continues to refuse to pay the amount due, the employee should then send a copy of the EAT Decision, together with the RP50 form to the Department for payment of the lump sum from the Social Insurance Fund.

Time Limit

The time limit for making such claims is 52 weeks after the date of termination of employment. Thus there are 52 weeks for a redundancy payment to be agreed on and paid or for the employee to give a written claim for redundancy to his/her employer or for a referral to the Employment Appeals Tribunal of the question of the right of the employee to a redundancy payment.

The Tribunal has discretion to extend the 52-week time limit to 104 weeks, provided that it receives the necessary claim within 104 weeks of the date of dismissal and is satisfied that the delay by the employee in making his/her claim arose through reasonable cause. It should be stressed, however, that the period of 52 weeks is the period which will normally apply.

In rare circumstances where for instance an employee is transferred from one employer to another without realising that the transfer involves his/her dismissal by one employer and his re-engagement by the other, and is subsequently made redundant, she/he has of course the usual period for applying for his redundancy entitlement in respect of the period spent working for the employer who made him redundant, and in respect of her/his pre-transfer employment. 

However, the Employment Appeals Tribunal may fix the date from which the time limit shall run for applying for redundancy to his/her previous employer, where his/her failure to apply was due to his not having received from such previous employer notice of dismissal or a redundancy certificate.
  

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