Redundancy entitlement query.

L

lolli

Guest
Hi,
I have been employed with my present employer for the last 13 Years. It is only a matter of time before the company(Multi national) closes and I will be made redundant.
The first 6 years I was full time and since then I job share at 21 hrs a week.
Will my Full time years be taken into consideration at all?
Is their a standard format to work out redundancy or is it up to the company?
Thanks in advance...
 
Providing you haven't broken your service by changing your hours (and from the sounds of it you haven't), yes it will be included in your service.

Redundancy can be split in 2, statutory which is 2 weeks salary per year of service up to a maximum of €600 per week + 1 extra week. Therefore if you were earning €500 a week and had 13 complete years of service, you'd get 13X2X500= €13k+ €500

Anything on top of that is at your employers discretion, there are no set formuales or requirements for them to pay
 
I think OP's question relates to whether s/he will get a redundancy payment calculated off the full time salary (or portion thereof) or the part-time salary. If e.g. the redundancy package is 4-weeks' of actual pay per year of service, will OP's 4-weeks be based on 4 current weeks (part time pay) or will his/her previous higher salary be taken into account?

OP, on the face of the information out there, it seems that such a calculation would be done off your current salary. See Citizen's Info (in respect of statutory redundancy):

"Pay refers to your current normal weekly pay, before tax and PRSI deductions, that is your gross pay."

There could be other examples where this seems more unfair - such as someone agreeing to work 3/4 days a week more recently as part of a cost-saving exercise but having their potential redundancy payments reduced as a result if the position is ultimately made redundant.

I don't know if there are other terms that I'm not aware of and am just basing my answer on what the published general information seems to say. In any case, I'd advise people who are agreeing to go part-time/cut hours as part of current cost cutting to address redundancy entitlements with their employers before they agree. Clarity on this issue between the parties is good for all sides.
 
Hi - just to narrow down the info that watersprite links to above, [broken link removed] is the specific one that addresses when/how the part-time or full-time salary should be used.
 
That's a good link. It irritates me that some government sites, through trying to use plain language, lose out on some elements of specificity (IMO)

For example, does the statement that, if an employee asks for the reduction in hours then their redundancy is based on the reduced hours, apply *after* a year of the reduced hours or does it apply immediately after the request has been granted?

All they'd need to do is change that sentence to read:

"If she had asked to be placed on reduced working hours for her own reasons and the employer agreed, then the redundancy entitlement would based on the reduced hours from the date those reduced hours took effect." (If that's what they intended to say)

From reading the original language, it's not 100% clear.

It would also be nice if they linked to the relevant legislation for those case studies so we could easily look at the base material.

I'll pop them a mail and see if they are open to suggestions!
 
Thanks guys,

So based on...
"The payment would normally be calculated on her earnings at the time she is let go"

I wonder if after 7 years on part time I go back Full time (which is an option) would I get redundancy based on Fulltime.
That would make a huge difference to my redundancy package of 13 yrs.

Your right Watersprite its not very clear at all.
 
If you can go back full time and your employer agrees, then that sounds like a good plan. Again, from the wording of the citizens' information site (if you turn it around), it's equally not clear if that year-rule applies if both parties agree to change back to full time. The problem with the wording is whether that year-long rule applies in all circumstances.

You should give them a call to check (and post back here too so we'll know!) If you can easily go back full time and that enhances a redundancy package, it certainly makes a lot of sense to change back.
 
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