Redundancy Rights In The UK and Ireland

The global recession has forced businesses to adjust their workforce numbers to deal with the credit crunch of the banking sector. Unemployment rates have increased in the UK and Ireland. In order to provide a safety net for these laid off workers, various "Redundancy Laws" have been established.

"What is Redundancy?"

Redundancy is the dismissal of an employee due to the need for a reduction in worker numbers. When factories decrease production, some workers might lose their jobs. The "redundant" job disappears because it is no longer needed.

"What is Redundancy Law?"

Redundancy law establishes the parameters by which employees qualify for redundancy payments. Redundancy rights include the right to advanced notice of dismissal and payments.

"UK Redundancy Law"

The UK Employment Rights Act of 1996 - through the National Public Purse Redundancy Payments Office (RPO) - regulates the redundancy payment process, which is meant to provide workers with time for training or looking for employment.

In order to qualify for redundancy payments, employees must have at least two years of continual employment under a spoken or written contract of employment. Workers must have been "dismissed" due to redundancy to qualify.

Certain UK employees do not qualify for redundancy payments; namely, members of the Armed Forces and UK Government staff, who are covered by other arrangements. Employees who receive a share of production are less likely to qualify for redundancy payments.

Redundancy payment claims include unpaid wages, holiday pay, and redundancy pay.

The minimum advanced notice requirement is based on the years of service. Efforts have been made to compensate older workers who have a more difficult time finding re-employment.

"Ireland Redundancy Law"

Ireland Redundancy Law is governed by the Ireland Redundancy Payments Act of 2003 & the Ireland Protection of Employment Act of 2007.

These have established that redundant workers should be paid two weeks worth of the "statutory redundancy payment" for each year of service. The "statutory redundancy entitlement" is calculated based on the length of service and weekly earnings.

Employees - between the ages of 16 and 66 (an amendment has added coverage for employees over 66) who have had two years of continual service - qualify for the statutory redundancy entitlement, as long as the employment was insurable under the Social Welfare Acts. Employers must give workers a two week notice of their redundancy.

The lump sum payment calculation is based on two weeks for each year of service, plus an additional bonus week.

"What is a Redundancy Calculator?"

A Redundancy Calculator helps workers determine how much they should receive in redundancy payments, based on two primary factors: 1) age and 2) years of service.

Redundancy can be a shock, but redundancy rights in the UK and Ireland provide workers with a safety net, so they have time, money, and the opportunity to travel or start a new career. If the person being made redundant has always harboured ideas of being self-employed or having their own business, it might be an ideal time to invest some of their redundancy in a business opportunity.


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Aileen Gallagher is an experienced and successful Internet Marketer who provides leading internet marketing training for newbies through to the more experienced. She is a founding member os the Six Figure Mentors and is an associate of YourNetBiz.