2 weeks per year above statutory - can weekly cap apply?

[boogaloo]

Hello,

Another question that has come to light.

The company is paying 4 weeks inclusive of statutory for each year of service.

2 weeks of this will be capped at €600 per week maximum, in accordance with the law surrounding statutory.

Can the employer also use this €600 figure as a cap for the extra 2 weeks/Ex gratia payment? Or would it be more the norm to actually give the extra 2 weeks at the emloyees real weekly rate - i.e. say 1,000 per week for example?

Is there anything in the redundancy acts about this? I haven't found anything so far.

Thanks v much

 

[Sunny]

They can pay what they want with regard to the ex gratia payment. I would imagine it is two weeks gross though and not capped.

 

[Setanta12]

+1 Sunny.

 

[glong]

Hi all


I would add to that that any payment over the statutory minimum may be taxable. More information on the Revenue website: http://www.revenue.ie/en/tax/it/leaflets/it21.html

Graham Long
Citizens Information