Statutory redundancy pay in Ireland: who qualifies and how much

A claim for statutory redundancy must be made to the employer in writing, or referred to the WRC, within 52 weeks of the date of dismissal; if you have a reasonable cause for missing that deadline, the WRC can still allow a claim lodged within 104 weeks (section 24 of the Redundancy Payments Act 1967, as amended in 1971 and 2015). An employer proposing to make you redundant must give you written notice at least 2 weeks before the dismissal, in addition to your minimum notice under the Minimum Notice and Terms of Employment Act 1973. A separate claim that the selection for redundancy was unfair has a much shorter limit: 6 months from dismissal under the Unfair Dismissals Act 1977.

1. Check that it is a genuine redundancy. Under section 7(2) of the 1967 Act, a dismissal is by reason of redundancy if it is wholly or mainly due to the employer closing the business or the workplace, or to a reduction in the need for employees to do work of your particular kind. It is the job that must go, not the person. If your role is filled by someone else soon afterwards, or you were picked because of a dispute, a complaint, pregnancy or another protected reason, the "redundancy" may in fact be an unfair dismissal. Ask the employer in writing for the business reason, the selection criteria, the pool of employees considered and the alternatives explored.
2. Check that you qualify. You need at least 104 weeks of continuous, reckonable service with the employer (including service with a previous owner where the business was transferred), you must be aged 16 or over, and you must have been in employment insurable for all benefits, which in practice means full-rate Class A PRSI. Part-time, fixed-term and agency workers can qualify if those conditions are met. Some absences are not counted as reckonable service, such as lay-off periods and long illness absences in the last three years before dismissal; your service counts, but those weeks are deducted when calculating the amount. Gather your contract, payslips and P60s or employment detail summaries from Revenue.
3. Calculate the statutory payment. The lump sum is two weeks' normal weekly remuneration for each year of reckonable service, plus one bonus week. Normal weekly remuneration includes basic pay, regular overtime and benefits in kind, before tax, but is capped at €600 a week for statutory purposes. Part years count proportionately (days divided by 365). Example: 10 years' service and gross pay of €800 a week gives 2 × 10 × €600 = €12,000, plus €600, a total of €12,600. Statutory redundancy is exempt from income tax. Any ex gratia amount above it may also be partly tax-free under the basic or increased exemption, which is worth checking with Revenue before you sign.
4. Check the notice and paperwork. An employer who proposes to dismiss you for redundancy must give you written notice of the proposed dismissal at least 2 weeks in advance (section 17 of the 1967 Act), and you are also entitled to your minimum notice under the 1973 Act, ranging from 1 week (under 2 years' service) to 8 weeks (15 years or more), or pay in lieu. Ask for a written statement of how your statutory payment was calculated. If you are offered a settlement with an enhanced payment, read whether it includes a waiver of other claims, such as unfair dismissal, and get independent advice before signing.
5. Consider any offer of alternative work. Under section 15, you lose the right to a redundancy payment if, before the dismissal, the employer offers to keep you on in the same job or in suitable alternative employment and you unreasonably refuse. Whether an offer is suitable depends on pay, hours, location, status and your personal circumstances, such as caring responsibilities or travel. If you are unsure, ask for a trial period and put any objections in writing with reasons. An unreasoned refusal of a genuinely suitable offer can cost you the entire statutory payment.
6. If you have been laid off or put on short time, you may be able to claim. Under section 7(3), if you are laid off or kept on short time (less than half your normal weekly hours or pay) for 4 or more consecutive weeks, or 6 weeks within a 13-week period, you can give the employer written notice that you intend to claim redundancy. The employer then has a short window to offer at least 13 weeks of uninterrupted work by counter-notice; if it does not, you can resign and claim. This route has strict notice requirements, so use the official forms or a clear written notice, and take advice before resigning.
7. Make the claim and refer disputes to the WRC. If the employer has not paid, write to the employer claiming your statutory redundancy payment, with your calculation, well within 52 weeks of dismissal. If it still refuses or disputes your entitlement or the amount, lodge a complaint under the Redundancy Payments Acts using the WRC online complaint form. An adjudication officer decides whether you are entitled and how much; either side can appeal to the Labour Court within 42 days. If your real complaint is that the selection for redundancy was unfair, add an unfair dismissal complaint, which must be lodged within 6 months of the dismissal.
8. If the employer cannot pay, apply to the State. Where the employer is insolvent, has ceased trading or otherwise fails to pay, you can apply to the Department of Social Protection for payment of the statutory amount from the Social Insurance Fund, using the employee application form (currently form RP50, available on gov.ie). You will need to show that you took reasonable steps to obtain payment from the employer, for example a written demand and, where relevant, a WRC decision. Where there is a liquidator or receiver, the application is usually processed with their confirmation. The State pays only the statutory amount, not any contractual enhancement.

• The 6-month time limit for an unfair selection claim is much shorter than the 52 weeks for the redundancy payment. Lodge the unfair dismissal complaint early if you think the redundancy was not genuine.
• Signing a compromise agreement for an enhanced package usually waives all statutory claims, including unfair dismissal. Read the waiver clause and get independent advice before signing.
• Unreasonably refusing suitable alternative employment can remove the entire statutory payment. Put any reasons for refusing an offer in writing at the time.
• Using gross pay above €600 a week in your calculation overstates the statutory entitlement. Higher earners should negotiate any enhanced payment separately rather than rely on the statutory floor.
• Less than 104 weeks' service or a period of non-insurable employment, for example as a self-employed contractor, means no statutory payment. If your status as an employee is disputed, raise it promptly.
• Resigning before the employer has given formal notice of redundancy, even if redundancies have been announced, can mean you resigned rather than were dismissed, and lose the payment.

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Last updated: 03/11/2026 · Sources: Redundancy Payments Act 1967 (s. 7 – right to payment, s. 15 – alternative employment, s. 17 – notice, s. 24 – time limit), Redundancy Payments Act 1971 (104 weeks' service and extension of the time limit), Redundancy Payments Act 2003 (two weeks per year plus one week), Minimum Notice and Terms of Employment Act 1973, irishstatutebook.ie, EUR-Lex

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