Written Answers. - Redundancy Payment.

Tony Gregory


235 Mr. Gregory asked the Minister for Labour if a person (details supplied) in Dublin 7 is entitled to more than one year's redundancy payment after 46 years of service.

Under the terms of the Redundancy Payments Acts, 1967 to 1991 a qualified employee who is dismissed by reason of redundancy is entitled to receive a redundancy lump sum payment from his/her employer calculated in accordance with the Acts as follows: (a) a half week's pay for each year of employment continuous and reckonable between the ages of 16 years and 41 years; (b) a week's pay for each year of employment continuous and reckonable over the age of 41 years; and (c) one week's pay. The pay used for this calculation is the employee's gross weekly pay at the time he/she is given notice of redundancy, but subject to the statutory ceiling applying at the time.

Records in my Department indicate that the person concerned was paid his statutory redundancy lump sum entitlement in full by his former employer on 11 July, 1990.

On the basis of the calculation detailed above, taking into account the age of the person concerned, his 46 years of service and his gross weekly pay (which was below the ceiling applicable at the time), the amount paid in respect of his statutory redundancy entitlement was the equivalent of 35 weeks' pay.

An employer is not legally obliged to pay an employee more than the statutory redundancy entitlement provided for in the Redundancy Payments Acts. Redundancy compensation over and above the statutory entitlement is a matter for negotiation and agreement between the employer and the employee (or a trade union acting on his/her behalf). If agreement cannot be reached through direct negotiations the matter can be referred to the Labour Relations Commission, the Labour Court or the Rights Commissioner Service for adjudication.
I should add that in July, 1990 a Rights Commissioner recommended that the person concerned should be paid "a redundancy lump sum in accordance with the terms and conditions of the Redundancy Payments Acts" by his former employer.