In general, if you are made redundant your job will no longer exist and your company will not hire someone else to replace you.
On being made redundant, anyone over the age of 16 who has a minimum of 104 weeks’ continuous service with their present employer is entitled to a statutory lump sum payment.
The statutory redundancy payment consists of two weeks’ gross pay – up to a ceiling of €600 per week – per year of service plus one bonus week’s pay (again to a ceiling of €600). All of this payment is tax free.
If you have been made redundant within a year of being put on reduced hours or pay, your redundancy payment will be based on your earnings for a full week. If the redundancy occurs more than a year after being put on reduced working hours, your payment will depend on whether you accepted the reduced working hours as your normal week and never asked to return to your normal hours.
If you did accept the situation, your lump-sum payment will be based on your new situation. If you didn’t, it’ll be based on your original weekly earnings.
If your employer gives you a lump-sum compensation over and above your redundancy payment, part of it may also be tax free.
Entitlements can be calculated on the Department of Enterprise Trade and Employment’s redundancy calculator.
For more information