Citizens Information Q&A - What are the rules around redundancy during the Covid-19 pandemic?
Q. What are the rules around redundancy during the Covid-19 Pandemic?
The Redundancy Payments Acts provide a minimum entitlement to a redundancy payment. Statutory redundancy applies to employees with two years' service, is tax-free and based on your gross pay. (Set at a maximum of €600 per week)
All eligible employees are entitled to:
Two week's pay for every year of service
One further week's pay
The following count as reckonable service:
Period in work, holiday absence, Illness absence, maternity, adoptive, paternity and carer’s leave
Absent from work by agreement with your employer
Any period of lock-out
Any period where the continuity of your employment is preserved under the Unfair Dismissals Acts.
The following periods over the last 3 years will not be taken into account as service:
Any period over 52 consecutive weeks where you were off work due to an injury at work
Any period over 26 consecutive weeks where you were off work due to illness
Any period on strike
Any period of lay off from work.
If made redundant within a year of being put on reduced hours or pay, your redundancy payment would be based on your earnings for a full week. If you are made redundant after working reduced hours for more than a year, your redundancy payment will be calculated depending on whether you accepted being on reduced hours or not. If you are put on short time and then made redundant your payment may be based on your pay for a full week.
Q. How is annual leave calculated?
Entitlement to annual leave is set out under the Organisation of Working Time Act and your contract of employment.
There are 3 ways of calculating your entitlement:
Based on the employee's working hours during what is called the leave year, which runs from April to March. An employee who has worked at least 1,365 hours in a leave year is entitled to the maximum of 4 working weeks' paid annual leave unless it is a leave year in which they change employment. Many employers use the calendar year (January-December)
1/3 of a working week for each calendar month in which the employee has worked at least 117 hours
8% of the hours worked in the leave year, subject to a maximum of 4 working weeks
An employee may use whichever of these methods gives the greater entitlement. When calculating entitlement, employers should include all hours worked including time spent on annual leave, maternity leave, parental leave, force majeure leave, adoptive leave or the first 13 weeks of carer’s leave.
During lay-off you do not accrue annual leave, but you are entitled to take annual leave accrued before and after lay-off. You are also entitled to public holidays that occur during the first 13 weeks of lay-off.
The Citizens Information Service can assist you in queries similar to the above. We are offering a phone and email service during the Covid-19 pandemic.
Citizens can access information and advice from the following contact points:
Tullamore CIC Local Office: 0761 07 6290 or firstname.lastname@example.org
Portlaoise CIC Local Office: 0761 07 5590 or email@example.com
The Citizens Information Service is funded and supported by the Citizens Information Board