Assuming that your wife was an employee of the business then yes she is entitled to the redundancy/termination payment however you may not get the 60% statutory refund from dept enterprise trade and employment.
Another thing to watch out for is that the universal social charge (USC) ,which replaced the prsi regime in the last budget, applies to redundancy payments that are in excess of the tax free redundancy payment. Depending on how much the redundancy payment is you may want to make your wife redundant as of 31 December 2010.