Redundancy Payments Act, 1971
What is this act about?
This law amends and expands the Redundancy Payments Act, 1967, primarily focusing on the conditions under which employees can claim redundancy payments and related matters. It clarifies definitions of redundancy, modifies procedures for claims, and addresses specific situations like changes in business control or age limits.
Who it applies to: Employees whose employment is terminated due to redundancy; Employers who are making employees redundant.
Deadlines:
- The Principal Act does not apply to a person who has attained the age of 70 years at the termination of their employment, with an exception for ongoing weekly payments.
- The Tribunal's chairman must have at least 7 years' experience as a practising barrister or solicitor, and there shall be not less than 12 and not more than 24 ordinary members.
At a glance
- Country
- Ireland
- Area of law
- Labour law
- Articles
- 20
- Source
- irishstatutebook.ie
- Text retrieved
- Explanation updated
What does this act regulate?
- The conditions for an employee to be considered redundant.
- The process for employees to claim redundancy payments, especially in cases of lay-off or short-time.
- The application of redundancy provisions to employees based on their age.
- The role and composition of the Tribunal dealing with redundancy matters.
Who does this act apply to?
- Employees whose employment is terminated due to redundancy.
- Employers who are making employees redundant.
What are the key points?
- The Principal Act does not apply to a person who has attained the age of 70 years at the termination of their employment, with an exception for ongoing weekly payments.
- An employee can claim redundancy payment due to lay-off or short-time if they have been laid off or on short-time for four or more consecutive weeks, or for six or more weeks within a thirteen-week period (with not more than three consecutive), and give notice within four weeks of the cessation of the lay-off or short-time.
- For a reference to the Tribunal, employment is presumed continuous unless proven otherwise, and dismissal is presumed to be due to redundancy unless proven otherwise.
- The Tribunal's chairman must have at least 7 years' experience as a practising barrister or solicitor, and there shall be not less than 12 and not more than 24 ordinary members.
Labour law
Legal text
Legal text
Redundancy Payments Act, 1971 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1971 Redundancy Payments Act, 1971 Redundancy Payments Act, 1971 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Revised Act Acht Athbh… Print Full ActPriontáil an tAcht Iomlán Number 20 of 1971 REDUNDANCY PAYMENTS ACT, 1971 ARRANGEMENT OF SECTIONS Section
Section 1
Definition.
Section 2
Extension of application of certain provisions of Acts.
Section 3
Provisions relating to persons who attain age of 70 years.
Section 4
Amendment of section 7 of Principal Act.
Section 5
Amendment of section 20 of Principal Act.
Section 6
Application of section 20 of Principal Act.
Section 7
Amendment of section 39 of Principal Act.
Section 8
Redundancy payment to certain employees dismissed before commencement of Act.
Section 9
Reference and appeal to the High Court.
Section 10
Presumptions by Tribunal.
Section 11
Right to redundancy payment by reason of lay-off or short-time.
Section 12
Time-limit on claims for redundancy payment.
Section 13
Rebates to employers from Redundancy Fund.
Section 14
Other payments to employees from Redundancy Fund.
Section 15
Provisions relating to special redundancy schemes.
Section 16
Offences relating to payments under Principal Act.
Section 17
Reciprocal arrangements.
Section 18
Aid to persons changing residence or undergoing certain training.
Section 19
Miscellaneous amendments of Principal Act.
Section 20
Short title, construction, collective citation and commencement.
SCHEDULE Acts Referred to Redundancy Payments Act, 1967 1967, No. 21 Deeds of Arrangement Act, 1887 1887, c. 57 First Schedule to the Succession Act, 1965 1965, No. 27 Number 20 of 1971 REDUNDANCY PAYMENTS ACT, 1971 AN ACT TO AMEND AND EXTEND THE REDUNDANCY PAYMENTS ACT, 1967 , AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [27th July, 1971.] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:
Definition.
1.—In this Act “the Principal Act” means the Redundancy Payments Act, 1967 .
Extension of application of certain provisions of Acts.
2.—In relation to an employee whose employment is terminated by reason of redundancy on or after the commencement of this Act, any provision of the Principal Act or this Act which affects or relates to the preservation of continuity of the employee's employment shall apply to periods of employment before the 1st day of January, 1968, as they apply to such periods after that date.
Provisions relating to persons who attain age of 70 years.
3.—(1) Notwithstanding section 4 (1) of the Principal Act, that Act shall not apply to a person who on the date of termination of his employment had attained the age of 70 years.
Amendment of section 7 of Principal Act.
4.—Section 7 of the Principal Act is hereby amended by— (i) the substitution for subsection (2) (b) of the following: “(b) the fact that the requirements of that business for employees to carry out work of a particular kind in the place where he was so employed have ceased or diminished or are expected to cease or diminish, or (c) the fact that his employer has decided to carry on the business with fewer or no employees, whether by requiring the work for which the employee had been employed (or had been doing before his dismissal) to be done by other employees or otherwise, or (d) the fact that his employer has decided that the work for which the employee had been employed (or had been doing before his dismissal) should henceforward be done in a different manner for which the employee is not sufficiently qualified or trained, or (e) the fact that his employer has decided that the work for which the employee had been employed (or had been doing before his dismissal) should henceforward be done by a person who is also capable of doing other work for which the employee is not sufficiently qualified or trained,” and (ii) the insertion after subsection (4) of the following subsection: “(4A) In ascertaining, for the purposes of subsection (2) (c), whether an employer has decided to carry on a business with fewer or no employees, account shall not be taken of the following members of the employer's family— father, mother, stepfather, stepmother, son, daughter, adopted child, grandson, granddaughter, stepson, stepdaughter, brother, sister, half brother, halfsister.”.
Amendment of section 20 of Principal Act.
5.—Section 20 of the Principal Act is hereby amended by the insertion after subsection (5) of the following subsection: “(5A) In a case mentioned in subsection (1) (a), the new owner shall be estopped from denying that an employee was in continuous employment (within the meaning of Schedule 3) unless, within 26 weeks of the change of ownership, he notifies the employee of his intention so to deny.”.
Application of section 20 of Principal Act.
6.—(1) Where— (i) a change relating to the control or management of a business (or part thereof) for the purposes of which a person is employed occurs, but a change in the ownership of the business (or part thereof) does not occur, (ii) section 20 of the Principal Act would have applied to that change if it were a change in the ownership of that business (or part thereof), and (iii) an employee of the previous owner accepts, before, on or within four weeks of the termination of his contract of employment with the previous owner, an offer by the new owner of employment in the same place of employment and on terms which are either the same as, or not materially less advantageous to the employee than, his existing terms of employment, the said section 20 shall apply to that change as if a change of ownership of that business (or part thereof) had occurred.
Amendment of section 39 of Principal Act.
7.—Section 39 of the Principal Act is hereby amended— (a) by the substitution for subsection (2) (a) of the following— “(a) a chairman who before his appointment shall have had not less than 7 years' experience as a practising barrister or practising solicitor,”, and (b) by the substitution for subsection (2) (c) of the following— “(c) not less than 12 and not more than 24 ordinary members.”.
Redundancy payment to certain employees dismissed before commencement of Act.
8.—(1) Where an employee who was dismissed before the commencement of this Act was not entitled to redundancy payment under the Principal Act in respect of the dismissal solely because the requirements of the business carried on by his employer for employees to carry out work of a particular kind, or to carry out such work in the place where the employee had been so employed, had not ceased or diminished or were not expected to cease or diminish, the Minister may, at his discretion and notwithstanding the Principal Act, pay to that employee out of the Redundancy Fund a sum equal in amount to the sum to which he would have been entitled under the Principal Act if the said requirements had ceased or diminished or were expected to cease or diminish.
Reference and appeal to the High Court.
9.—The following section is hereby substituted for section 40 of the Principal Act: “40. (1) Where any question, other than a question specified in section 38 (1) (a), 38 (1) (b) or 38 (1) (c), is referred to the Tribunal, the Minister may, on the request of the Tribunal, refer the question for the decision of the High Court.
Presumptions by Tribunal.
10.—For the purposes of a reference to the Tribunal— (a) a person's employment during any period shall, unless the contrary is proved, be presumed to have been continuous; (b) an employee who has been dismissed by his employer shall, unless the contrary is proved, be presumed to have been so dismissed by reason of redundancy; (c) the Tribunal shall, after consultation with any person or body charged by statute with the fixing or determination of minimum wages or rates of pay, or the registration of employment agreements under the Industrial Relations Act, 1946, have regard to any such minimum as is appropriate or relevant.
Right to redundancy payment by reason of lay-off or short-time.
11.—The following section is hereby substituted for section 12 of the Principal Act: “12.—(1) An employee shall not be entitled to redundancy payment by reason of having been laid off or kept on short-time unless— (a) he has been laid off or kept on short-time for four or more consecutive weeks or, within a period of thirteen weeks, for a series of six or more weeks of which not more than three were consecutive, and (b) after the expiry of the relevant period of lay-off or short-time mentioned in paragraph (a) and not later than four weeks after the cessation of the lay-off or short-time, he gives to his employer notice (in this Part referred to as a notice of intention to claim) in writing of his intention to claim redundancy payment in respect of lay-off or short-time.
Time-limit on claims for redundancy payment.
12.—(1) Section 24 of the Principal Act is hereby amended by the insertion at the end of that section of the following subsection: “(2) Notwithstanding any provision of this Act, an employee shall not be entitled to a weekly payment unless he has become entitled to a lump sum”.
Rebates to employers from Redundancy Fund.
13.—The following section is hereby substituted for section 29 of the Principal Act: “29. (1) Subject to this Part, the Minister shall make from the Redundancy Fund to an employer who pays a lump sum a payment (in this Part referred to as a rebate) of such sum as is equivalent in amount to— (a) where the lump sum does not exceed twenty times the relevant normal weekly remuneration calculated in accordance with Schedule 3—55 per cent. of the lump sum, (b) where the lump sum exceeds twenty times the relevant normal weekly remuneration as so calculated—the aggregate of the following— (i) 55 per cent. of the product obtained by multiplying by twenty the relevant normal weekly remuneration, (ii) the amount by which the lump sum exceeds the said product.
Other payments to employees from Redundancy Fund.
14.—The following section is hereby substituted for section 32 of the Principal Act: “32. (1) When an employee claims that an employer is liable to pay to him a lump sum under section 19 and that— (a) the employee has taken all reasonable steps (other than legal proceedings) to obtain the payment of the lump sum from the employer and the employer has refused or failed to pay it or has paid part of it and has refused or failed to pay the balance, (b) the employer is insolvent and the whole or part of the lump sum remains unpaid, or (c) the employer has died and neither probate of his will has, nor letters of administration in respect of his estate have, been granted, and the whole or part of the lump sum remains unpaid, the employee may apply to the Minister for a payment under this section.
Provisions relating to special redundancy schemes.
15.—(1) Any dispute arising under a special redundancy scheme may be referred by a party to the scheme to the Tribunal and shall be deemed to be a question referred under section 39 of the Principal Act to the Tribunal for a decision on the question.
Offences relating to payments under Principal Act.
16.—(1) A person who fraudulently claims a weekly payment, fraudulently applies to the Minister for a payment under section 32 of the Principal Act or fraudulently makes a claim for a rebate, shall be guilty of an offence and shall be liable on summary conviction to a fine not exceeding fifty pounds.
Reciprocal arrangements.
17.—(1) The Minister may make such orders as may be necessary to carry out any reciprocal or other arrangements, made with the proper authority under any other Government, in respect of matters relating to redundancy payments, and may by any such order make such adaptations of and modifications in the Principal Act as he considers necessary.
Aid to persons changing residence or undergoing certain training.
18.—The following is hereby substituted for section 46 (1) of the Principal Act: “(1) The Minister may, for the purpose of promoting national economic policy, make with the consent of the Minister for Finance regulations providing for financial assistance out of moneys provided by the Oireachtas— (a) to persons who are obliged to change their normal place of residence in order to take up employment offered or approved by the National Manpower Service, or (b) to enable persons to travel for selection for training at approved training centres or to undertake courses of training at such centres.”.
Miscellaneous amendments of Principal Act.
19.—(1) Each provision of the Principal Act mentioned in column (1) of the Schedule to this Act is hereby amended in the manner stated in column (2) of that Schedule opposite the mention of that provision in column (1).
Short title, construction, collective citation and commencement.
20.—(1) This Act may be cited as the Redundancy Payments Act, 1971.
SCHEDULE Miscellaneous Amendments of the Principal Act
Section 19
.
Provision Amended Nature of Amendment
(1)
(2)
Section 2.
The substitution in subsection (1) for the definition of “the Employment Service” of the following: “ ‘the National Manpower Service’ means the service known by that title and operated under the control of the Minister;”.
The insertion after “section 11 (2)” in the definition of “short-time” of “or section 11 (3) (as the case may be)”.
Section 4.
The substitution in subsection (1) of “four years” for “two years”.
The insertion after subsection (3) (b) of the following: “(c) In deducing any relationship for the purposes of paragraph (b)— (i) a person adopted under the Adoption Acts, 1952 and 1964, shall be considered the legitimate offspring of the adopter or adopters; (ii) subject to clause (i) of this paragraph, an illegitimate person shall be considered the legitimate offspring of his mother and reputed father; (iii) a person in loco parentis to another shall be considered the parent of that other.”.
Section 5.
The insertion in subsection (1) after “47” of “or
Section 17
of the Redundancy Payments Act, 1971”.
Section 7.
The substitution in subsection (1) (b) of “four years” for “two years”.
The substitution in subsection (5) of “104 weeks” for “208 weeks”.
Section 8.
The substitution in subsection (2) of “section 12” for “section 12 (2)”.
Section 9.
The deletion in subsection (1) (c) of “without notice”.
The substitution in subsection (3) (b) for “mentioned in paragraph (a) (ii)” of “with the previous employer”.
Section 11.
The deletion in subsection (1) of “after the commencement of this Act”.
The insertion after subsection (2) of the following: “(3) Where by reason of a diminution in the work provided for an employee by his employer (being work of a kind which under his contract the employee is employed to do) the employee's reduced hours of work for any week are less than one-half of his normal weekly hours, he shall for the purposes of this Part be taken to be kept on short-time for that week.”
Section 13.
The substitution in subsection (4) of “section 12” for “section 12 (2)”.
Section 15.
The deletion in subsections (1) and (2) of “who has received the notice required by section 17” and “in the period of two weeks ending on the date of dismissal”.
The substitution in subsections (1) (b) and (2) (b) for “his dismissal” of “the termination of his contract”, and the substitution in subsections (1) (c) and (2) (d) for “dismissal” of “the termination of his contract”.
The insertion after subsection (2) of the following subsection: “(2A) Where an employee who has been offered suitable employment and has carried out, for a period of not more than four weeks, the duties of that employment, refuses the offer, the temporary acceptance of that employment shall not solely constitute an unreasonable refusal for the purposes of this section.”.
The substitution for subsection (3) of the following: “(3) Where a person who is entitled to a weekly payment has unreasonably refused suitable employment offered or approved by the National Manpower Service, that person shall be disqualified from receiving a weekly payment for a period not exceeding six weeks.”.
Section 16.
The substitution in subsection (3) (a) of “none of the conditions specified in section 7 (2) is fulfilled, but” for “neither of the conditions specified in sections 7 (2) (a) and 7 (2) (b) is fulfilled, but”.
Section 17.
The substitution in subsection (1) of “104 weeks” for “four years”.
Section 18.
The substitution for subsection (1) of the following: “(1) When an employer dismisses by reason of redundancy an employee who has not less than 104 weeks' continuous employment, he shall give to the employee not later than the date of the dismissal a certificate (in this Part referred to as a redundancy certificate).”.
The substitution for subsection (2) of the following: “(2) Whenever an employee who has not less than 104 weeks' continuous employment gives notice of intention to claim in accordance with section 12, his employer shall, subject to section 13, give him, not later than seven days after the service of the notice of intention to claim, a redundancy certificate.”
Section 19.
The substitution in subsection (1) of “or where by virtue of section 12 an employee becomes entitled to redundancy payment” for “or upon the termination by such an employee in accordance with section 12 (2) of his contract of employment”.
Section 21.
The substitution in subsection (2) of “section 7 (2)” for “section 7 (2) (a) or 7 (2) (b)”.
Section 25.
The substitution in subsection (2) for “An employee” of “Notwithstanding subsection (1), an employee”.
Section 30.
The substitution in subsection (1) of “or where by virtue of section 12 he becomes entitled to redundancy payment” for “or upon the termination by him, in accordance with section 12 (2), of his contract of employment”.
Section 37.
The deletion of “from his officers”.
Section 56.
The insertion in subsection (2) after “section 39” of “and section 40”.
Schedule 1.
The deletion of paragraph 2 and the substitution therefor of the following— “(2) The total amount being paid to a person in respect of the following: a weekly payment, unemployment benefit under the Social Welfare Acts, 1952 to 1970, disability benefit under those Acts, maternity allowance under those Acts, unemployment assistance under the Unemployment Assistance Acts, 1933 to 1970, or (in the case of a person normally resident in Northern Ireland) a weekly payment, unemployment benefit under the National Insurance Acts (Northern Ireland) 1966 to 1970, sickness benefit under those Acts, maternity allowance under those Acts, supplementary benefit under the Supplementary Benefits Acts (Northern Ireland) 1966 to 1969, shall not exceed 90 per cent of that person's normal weekly remuneration; provided that a person shall not receive in respect of unemployment benefit, disability or sickness benefit, maternity allowance, unemployment assistance or supplementary benefit less than that to which that person would, but for this Act, have been entitled.”
The substitution for paragraph 4 of the following: “4. A weekly payment shall not be paid to a person otherwise entitled thereto for any period during which that person is, by virtue of section 15 (2) of the Act of 1952, disentitled to disability benefit or unemployment benefit.”.
The substitution for paragraph 5 of the following: “5. (a) A weekly payment shall not be paid to a person in respect of any period unless during that period the person was not gainfully employed and the fact that he was not so employed could not reasonably be attributed to the person's own failure or refusal to seek or accept or continue in suitable gainful employment. (b) A person who is entitled to and in receipt of unemployment benefit or disability benefit under the Social Welfare Acts, 1952 to 1970, may be deemed to be not gainfully employed for the purposes of this paragraph.”.
The insertion in paragraph 6 after “redundancy” of “or by whom he was employed when he gave notice of intention to claim under section 12; provided that he shall, subject to paragraph 5, in every case be entitled to receive not less than four weekly payments”.
The substitution for paragraph 7 of the following: “7. In calculating years of continuous employment for the purposes of paragraph 6 in relation to a person whose employment is terminated after the commencement of the Redundancy Payments Act, 1971, each period of one year during the whole of which the person entitled to the weekly payment was 41 years of age or older shall be reckoned as two completed years of continuous employment.”.
The substitution in paragraph 9 of “any period referred to in paragraph 4” for “the two-week period mentioned in paragraph 4.”
The substitution in paragraph 9 of “in such a period mentioned in paragraph 4” for “that two-week period”.
The insertion in paragraph 14 after “within the State” of “or Northern Ireland”.
The insertion after paragraph 14 of the following: “15. (1) A person who has lost employment by reason of a stoppage of work which was due to a trade dispute at the factory, workshop, farm or other premises or place at which he was employed shall not be entitled to a weekly payment so long as the stoppage of work continues, except, subject to paragraph 5, in a case where he has, during the stoppage of work, become bona fide employed elsewhere in the occupation which he usually follows or has become regularly engaged in some other occupation.
Schedule 2.
In paragraph 17, the substitution for “has given notice to an employee to terminate his contract of employment and” of “before the termination of an employee's contract of employment”.
The deletion of paragraph 19 (1).
The deletion of paragraph 20.
Schedule 3.
The insertion in paragraphs 1 (a) and 1 (b) after “with the employer in whose employment he was on the date of dismissal”, of “or by whom he was employed when he gave notice of intention to claim under section 12,”.
The deletion in paragraph 1 (b) of “on the date of his dismissal”.
The insertion in paragraph 1 after subparagraph (b) of the following: “and (c) a sum equivalent to the employee's normal weekly remuneration.”.
The deletion of paragraph 2.
The substitution in paragraph 5 (1) for “Where an employee's period of service had been” of “Where an employee's period of employment is or was”.
The insertion in paragraph 5 (1) (a) after “sickness” of “(including an injury)”.
The insertion after paragraph 5 (1) (a) of the following: “(ai) any period by reason of service by the employee in the Reserve Defence Force,”.
The deletion of paragraph 5 (1) (b) (iii).
In paragraph 5 (1), the deletion of “has been given” and the substitution of “has or had been given”.
The insertion after paragraph 5 of the following: “(5A) If an employee is dismissed by reason of redundancy before attaining the period of 104 weeks referred to in section 7 (5) (as amended) of the Principal Act and resumes employment with the same employer within 26 weeks, his employment shall be taken to be continuous.”
The substitution for paragraph 6 of the following: “6. Where a trade or business or an undertaking (whether or not it be an undertaking established by or under an Act of the Oireachtas), or part of a trade or business or of such an undertaking, was or is transferred from one person to another, the period of employment of an employee in the trade, business or undertaking (or in the part of the trade, business or undertaking) at the time of the transfer shall count as a period of employment with the transferee, and the transfer shall not break the continuity of the period of employment.”.
The insertion in paragraph 13 after “work done” where that secondly occurs of “and any payment in kind”.
The substitution in paragraph 13 for “an employee who is expected to work overtime regularly” of “an employee who is normally expected to work overtime”.
The deletion in paragraph 24 of the definition of “overtime premium”.
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