REDUNDANCY INFO

Independent Information on Redundancy in Ireland

Text Box: Reckonable and Non-Reckonable Service

The following is always regarded as reckonable service:

- A week falling within a period of continuous employment during any part of which an employee is actually at work, or

- Absence from work due to sickness, holidays or with his/her employers permission (subject to the 52 weeks and 26 weeks rule re “excess” sick leave), or

- Absence from work because of a lock-out, or

- Periods of service where continuity is preserved in any case of redress by way of re-instatement or re-engagement under the Unfair Dismissals Acts 1977 to 2001.

During, and only during, the 3 year period ending with the date of termination of employment, the following are all non-reckonable for redundancy calculation purposes in respect of redundancies notified/declared on or after 10th April, 2005 –

 (a) absence in excess of 52 consecutive weeks by reason of an occupational accident or disease within the meaning of the Social Welfare (Consolidation) Act 1993 – the first 52 weeks are therefore fully reckonable,

(b) absence in excess of 26 consecutive weeks by reason of any illness not referred to in subparagraph (a) – the first 26 weeks are therefore fully reckonable,

(c) absence by reason of lay-off by the employer,

(d) absence from work by reason of a strike in the business or industry in which the employee concerned is employed.

Non-reckonable service in respect of redundancies notified/declared on or after 10th April, 2005 is applicable only to the final 3 years of service, ending on the date of termination of employment. Thus, if an employee was working in a company for a total of 20 years, the non-reckonable service referred to in (a) to (d) above only applies to the last 3 years – all such absences referred to are fully reckonable in respect of the first 17 years of employment.

This 3 year rule does not apply to redundancies notified before the above date of 10th April, 2005. In the case of such previous redundancies therefore, such non-reckonable periods of employment as above (a) to (d) are applicable to the entire employment history of the employee.

While Maternity Leave, Adoptive Leave, Parental leave and Carer’s Leave were already reckonable before, the following allowable absences are specifically referred to in Section 12 of the Redundancy Payments Act, 2003, which came into operation on 10th April 2005 with respect to redundancies notified/declared as and from that date:  

(a) (i) Absence from work while on adoptive leave under the Adoptive Leave Act 1995 – increased from 14 weeks to 16 weeks from 19th November, 2004, further increased to 20 weeks on 1st March 2006 and increased to 24 weeks from 1st March 2007. 

(a) (ii) Absence from work while on additional adoptive leave under the Adoptive Leave Act 1995 – increased from 8 weeks to 12 weeks from 1st March 2006 and increased to 16 weeks from 1st March 2007

(b) Absence from work while on additional maternity leave, increased from 8 weeks to 12 weeks from 1st March 2006 and further increased to 16 weeks from 1st March 2007 (maternity leave of 18 weeks – increased to 22 weeks from 1st March 2006 and to 26 weeks from 1st March 2007, under the Maternity Protection Act 1994 was itself already allowable in the pre-10th April, 2005 period and, of course, continues to be allowable), protective leave or natal care absence within the meaning of the Maternity Protection Act 1994 (since amended by the Maternity Protection (Amendment) Act 2004),

(c) Absence from work while on parental leave (14 weeks) or force majeure leave within the meaning of the Parental Leave Act 1998,

(d) Absence from work while on carers leave (subject to a minimum of 13 weeks and a maximum of 104 weeks in respect of any one care recipient) within the meaning of the Carer’s Leave Act, 2001 as amended by S(7) of the Social Welfare Law Reform and Pensions Act 2006,

(e) Any absences not mentioned under (a) to (d) above but authorised by the employer e.g. a career break. In respect of redundancies notified/declared before 10th April, 2005, there was a 13 weeks limit within a period of 52 weeks in respect of such absences.

While lay-off within the 3 year period referred to above (ending on the date of termination of employment), is non-reckonable, absence due to short-time working is fully reckonable. Short-time working can be defined as a situation where due to a reduced demand for work an employees earnings are less that half his/her normal weekly earnings or his/her hours worked are less than half his/her normal weekly working hours.




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