Management - Statutory requirements

The Redundancy Payments Acts, 1967-1991 places a statutory obligation on employers to pay compensation to employees dismissed for reasons of redundancy.

The Act's basic provisions are as follows:
An employee is entitled to a redundancy lump-sum payment provided they meet the following criteria:

• 104 weeks' continuous service
  
  
• Age between 20 and 64
  
  
• Employment is terminated because of redundancy

The lump-sum redundancy payment is calculated as follows:

• For each year of employment between the ages of 16 and 41 years, a half week's pay
  
  
• For each year of employment over the age of 41, one week's pay
  
  
• In addition, one week's pay irrespective of service.
  (A week's pay is subject to a ceiling of £260 a week ).

The lump-sum must be paid by the employer direct to the employee.

When dismissal actually takes place, the employee must be given a Redundancy Certificate.

When an employee is entitled to a statutory redundancy payment and has taken all reasonable steps (excluding legal proceedings) to obtain the payment, but the employer refuses or fails to pay, the employee may apply to the Department of Trade and Industry for payment. Disputes regarding entitlements under the Acts may be referred to the Employment Appeals Tribunal.