Redundancy happens when your job ceases to exist: the business closes, moves, restructures or needs fewer people doing your kind of work. It is the position that becomes redundant, not the person, and that distinction matters. If someone is hired to replace you doing the same work, that is not a redundancy at all and different protections apply.
If the redundancy is genuine and you have at least 2 years of insurable service, the Redundancy Payments Acts guarantee you a statutory lump sum: 2 weeks' gross pay per year of service plus one bonus week, all of it capped at €600 per week and all of it tax-free. On top of that sit your notice rights, paid time off to job-hunt during notice, and PRSI-based jobseeker payments from your first day out of work. None of this depends on your employer's goodwill, and if they cannot or will not pay, the State's Social Insurance Fund stands behind the debt.
Made for people like you
You have just been told
Your employer has announced redundancies or handed you notice. You want to check the numbers, the notice period and the process before you sign anything.
You are on lay-off or short-time
Work has dried up but nobody has said the word redundancy. After 4 consecutive weeks of lay-off or short-time (or 6 of the last 13), you can trigger a redundancy claim yourself.
You suspect unfair selection
Others doing the same job kept theirs, and the selection criteria look personal rather than objective. That can be an unfair dismissal, which is a different and stronger claim.
You hold an employment permit
All of these rights apply to you in full, and you have extra immigration steps on top: a 28-day DETE notification and a 6-month window to find a new role. We cover those on the dedicated page.
Do you qualify?
Statutory redundancy has three core conditions. Meet all three and the lump sum is a legal entitlement, not a favour.
You qualify if
- You have at least 104 weeks (2 years) of continuous service with this employer
- Your employment is fully insurable under the Social Welfare Acts, Class A PRSI for most employees
- You were dismissed by reason of redundancy: the job itself ceased to exist
- You are aged 16 or over, there is no upper age limit since 2007
- Part-time and fixed-term workers count too, on the same service and PRSI tests
- Maternity, paternity, adoptive, parental, parent's and carer's leave do not break your continuous service
This is not redundancy if
- Someone is hired to replace you in the same role, that points to unfair dismissal, a different claim
- You resigned before being given notice of redundancy
- You were dismissed for conduct or performance, different rules and protections apply
- You unreasonably refused a suitable alternative role offered by the same employer
Statutory redundancy vs an ex-gratia package
Statutory redundancy
Your legal floor- Amount
- 2 weeks per year + 1 bonus week
- Pay counted
- Capped at €600 a week
- Tax
- 100% tax-free
- Who decides
- Set by law, not negotiable downwards
- If employer can't pay
- Social Insurance Fund pays instead
Ex-gratia (enhanced) package
- Amount
- Whatever is offered or negotiated on top
- Pay counted
- No statutory cap, employer's choice
- Tax
- Reliefs apply, but it can be taxable above them
- Who decides
- The employer, often tied to a waiver
- Watch for
- Signing away claims, get advice before you sign
How the journey works
- 01
Get the redundancy confirmed in writing
Day 1You are entitled to written notice of the redundancy, at least 2 weeks, and longer if your minimum-notice entitlement is higher. The letter should state your final date. Do not resign in anticipation: leaving before notice is given can cost you the entire entitlement.
- 02
Check the selection was fair
Week 1Where some roles stay and some go, the employer must use fair, objective selection criteria, last-in-first-out, skills matrices, or agreed procedures. Selection because of pregnancy, union membership, age or a personal grudge is unfair dismissal, and the time limit for that WRC claim is 6 months.
- 03
Work your notice, with paid time off to job-hunt
Notice periodDuring the final 2 weeks of notice you have a right to reasonable paid time off to look for a new job or arrange training. If the employer prefers, they can pay you in lieu of notice instead; the statutory calculation is unaffected either way.
- 04
Check the lump-sum calculation
Before the last dayTwo weeks' gross pay per full year of service plus one bonus week, everything capped at €600 a week. Only complete years count: 9 years and 8 months counts as 9. We sanity-check the employer's figure against your contract, payslips and start date, including any breaks that do or do not count.
- 05
Get paid on termination
Last dayThe statutory lump sum is due when the employment ends, alongside outstanding wages, unused annual leave and any notice pay. It is completely tax-free, and it does not touch your pension or your PRSI record.
- 06
If the employer does not pay
Within 52 weeksFirst put the claim to the employer in writing using form RP77. If they still refuse and are solvent, complain to the Workplace Relations Commission. If the company is insolvent or genuinely cannot pay, the claim goes to the Department of Social Protection and the Social Insurance Fund pays you directly. Either way, act inside the 52-week window.
- 07
Sign on from day one
Day after terminationApply for Jobseeker's Benefit, or, since 31 March 2025, Pay-Related Jobseeker's Benefit, which pays up to €450 a week initially for people with 5 or more years of PRSI contributions. Getting a redundancy payment does not stop you claiming, though a lump sum over €50,000 can defer payment for up to 9 weeks if you are under 55.
What to gather
Start collecting these early. Weak or missing documents are the most common avoidable cause of delays and refusals.
Contract of employment
Confirms your start date, pay and notice terms
Redundancy notice letter
Written notice with your final date, keep every version
Recent payslips
Establish your normal gross weekly pay for the calculation
Statement of the lump-sum calculation
Ask the employer to show years counted and the weekly figure used
Record of any lay-off or short-time
Dates matter if you are triggering the claim yourself
Form RP77
Your written claim to the employer if the lump sum is not paid
PPS number and bank details
Needed for a Social Insurance Fund claim and for jobseeker payments
Any settlement or waiver you are asked to sign
Have it reviewed before signing; it can extinguish claims
Every case is different. We confirm your exact list at consultation.
What it costs
| Item | Cost | Notes |
|---|---|---|
| Claiming your statutory redundancy | €0 | It is a legal entitlement, there is no fee to be paid to anyone to receive it. |
| WRC complaint if the employer refuses | €0 | Workplace Relations Commission complaints are free to lodge online. |
| Social Insurance Fund claim | €0 | Applies where the employer is insolvent or cannot pay; paid by the Department of Social Protection. |
| Our consultation | Fixed fee | Numbers checked, letters reviewed, next steps mapped, agreed up front at booking. |
Statutory redundancy is 100% exempt from income tax, USC and PRSI. Ex-gratia amounts on top have their own tax reliefs (basic exemption and SCSB) with a €200,000 lifetime ceiling on tax-free termination payments, worth professional advice on larger packages.
How long it takes
Guide figures from current official processing information. Individual cases vary.
Notice of redundancy
2 to 8 weeks
At least 2 weeks by law; your minimum-notice entitlement rises with service, up to 8 weeks after 15 years.
Payment of the lump sum
On termination
Due on your final day, together with outstanding wages and untaken annual leave.
Claim window
52 weeks
Put your claim to the employer within a year of dismissal. The WRC can extend to 104 weeks where there is reasonable cause.
Unfair-selection claim
6 months
Unfair dismissal complaints to the WRC run on a shorter clock than the redundancy claim itself; do not confuse the two.
Where redundancy goes wrong
Most people never dispute a redundancy; they simply lose money to one of a handful of avoidable mistakes.
It was never a genuine redundancy
The role was advertised again weeks later, or your duties were quietly handed to a new hire. That is dismissal dressed up as redundancy, and accepting it as redundancy can undersell your claim.
Avoid it: Keep job ads, org charts and emails. An unfair dismissal claim at the WRC can be worth up to 2 years' pay, far more than a statutory lump sum.
Resigning before notice is given
Jumping early, even with a new job lined up, can mean you were not dismissed at all, and the entitlement evaporates. The same trap catches people who leave during a lay-off without following the claim procedure.
Avoid it: Wait for written notice, or if you are on extended lay-off, serve your own written notice of intention to claim before going anywhere.
Missing the 52-week window
The right to the lump sum lapses 52 weeks after dismissal if no claim has been made to the employer or the WRC. Extensions to 104 weeks exist but only for reasonable cause, and they are never guaranteed.
Avoid it: Send form RP77 early if payment is slow. A dated written claim inside the year protects everything that follows.
Waiting out an endless lay-off
Employers sometimes leave staff on lay-off or short-time indefinitely rather than pay redundancy. After 4 consecutive weeks (or 6 of the last 13) the choice becomes yours, but only if you act.
Avoid it: Serve written notice of your intention to claim redundancy. The employer then has 4 weeks to offer at least 13 weeks of unbroken work, or the lump sum is due.
Signing a waiver for less than you are owed
Severance agreements routinely ask you to waive all claims, statutory, contractual and WRC, in exchange for the package. Signed under time pressure, they are very hard to unwind.
Avoid it: The statutory lump sum is yours by law and cannot be bargained below the floor. Have any waiver reviewed before you sign, not after.
Miscounted service or miscounted pay
Employers get the arithmetic wrong more often than you would think: excluded overtime that was regular, broken service that was actually continuous, protective leave wrongly deducted.
Avoid it: Check the calculation against your own records. Regular overtime and shift premiums belong in normal weekly remuneration; family leave does not break service.
Common questions
How exactly is the lump sum calculated?+
Two weeks' normal gross weekly pay for every complete year of service, plus one further week, with all pay capped at €600 a week. Ten years at any salary of €31,200 or more works out at (10 × 2 × €600) + €600 = €12,600, entirely tax-free. Only whole years count: 9 years and 11 months is 9 years for the calculation.
Is my redundancy payment taxed?+
The statutory lump sum is 100% exempt from income tax, USC and PRSI. Anything the employer pays on top, an ex-gratia or enhanced package, has its own reliefs: a basic exemption of €10,160 plus €765 per year of service, or the SCSB formula if it is higher, within a lifetime tax-free ceiling of €200,000 on termination payments. Above the reliefs, the excess is taxed as income.
What notice am I entitled to?+
At least 2 weeks' written notice of the redundancy itself. Your minimum-notice entitlement can be longer: 1 week after 13 weeks' service, 2 weeks after 2 years, 4 weeks after 5 years, 6 weeks after 10 years and 8 weeks after 15 years. The employer can pay in lieu of notice instead, and during the final 2 weeks you are entitled to reasonable paid time off to look for work.
My employer says they can't afford to pay. What now?+
The debt does not disappear. If the employer is insolvent, or genuinely cannot pay, the claim is made to the Department of Social Protection and the Social Insurance Fund pays your lump sum directly; the State then chases the employer, not you. If the employer is solvent but simply refusing, form RP77 followed by a free WRC complaint is the route.
I've been on lay-off for two months. Can I force the issue?+
Yes. After 4 consecutive weeks of lay-off or short-time, or any 6 of the last 13 weeks, you can serve written notice of your intention to claim redundancy. The employer then has 4 weeks to give you a written counter-notice guaranteeing at least 13 weeks of work without further lay-off. No counter-notice, and the redundancy payment falls due.
Can I claim a social welfare payment as well as redundancy?+
Yes. Jobseeker's Benefit is PRSI-based and sits alongside your lump sum. Since 31 March 2025 there is also Pay-Related Jobseeker's Benefit for new claims: up to €450 a week for the first 3 months if you have 5+ years of contributions, stepping down over 9 months. One caveat: if you are under 55 and your total redundancy package exceeds €50,000, your jobseeker payment can be deferred for up to 9 weeks.
I was selected while colleagues doing the same job stayed. Is that legal?+
Only if the selection criteria were fair, objective and applied consistently: things like agreed procedures, skills assessments or last-in-first-out. Selection influenced by pregnancy, family leave, union activity, age or having raised complaints is unfair dismissal. That WRC claim must be lodged within 6 months and can be worth up to 2 years' remuneration, so take advice quickly.
I'm on an employment permit. Does any of this change for me?+
Every right on this page applies to you exactly as it does to an Irish citizen: the statutory lump sum, notice, time off, jobseeker's benefit. On top of that you have immigration steps with their own deadlines: notifying DETE within 28 days and a 6-month window to find a new role. We cover those, step by step, on our Redundancy on a Work Permit page.
Grounded in official sources
Ready to talk through your next step?
Book a consultation with our team and leave with a clear, personal plan grounded in the official rules.
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