Ireland statutory redundancy explained
Ireland’s statutory redundancy payment is a lump sum based on reckonable service and weekly pay, with a prominent €600 weekly cap. This guide explains the consumer-facing rules so MyWelfare and Citizens Information pages make sense alongside a calculator estimate.
Who usually qualifies
Employees ordinarily need at least two years (104 weeks) of continuous service and to be dismissed by reason of redundancy. Fixed-term endings, insolvency, and apprenticeship situations can involve extra rules. If your status is unusual, start with Citizens Information and escalate to a solicitor or union representative before you sign a compromise.
The statutory formula
The standard expression is (2 × years of reckonable service) + 1 weeks’ pay. Weekly pay for this calculation is generally capped at €600. That cap is why a €1,000/week earner does not receive statutory redundancy based on the full €1,000.
Reckonable service vs calendar years
Not every week always counts. Lay-off, certain unpaid absences, and breaks can affect reckonable service. Ask your employer for the reckonable years they will use and compare them with your own timeline. Our separate reckonable service guide walks through the practical questions to ask.
Tax treatment at a high level
Statutory redundancy is generally treated favourably for tax, but amounts above the statutory entitlement (enhanced packages) can be taxed differently. Confirm current Revenue practice for your settlement — do not rely on a blog post for tax filing.
Estimate, then verify
Run the Ireland redundancy calculator or the dual UK & Ireland tool. Then verify with MyWelfare and read the Citizens Information redundancy cluster.
Related guides
Official sources to keep open
Bookmark the primary official pages for your jurisdiction and re-check them whenever caps or bands change. Calculator sites (including this one) lag legislation if maintainers miss an update.
- GOV.UK — redundant employee rights
- GOV.UK — redundancy pay calculator
- Citizens Information — redundancy (Ireland)
- GOV.UK — Stamp Duty Land Tax
- Revenue.ie
Disclaimer
This article is general information for consumers in the UK and Ireland. It is not legal or tax advice and is not a substitute for advice on your facts. See our Disclaimer.
Scenarios worth modelling
Pay above €600
Once weekly pay exceeds €600, extra earnings do not lift the statutory formula. Focus energy on reckonable service accuracy and any enhanced contractual terms.
Service near a whole-year boundary
Because the formula uses complete reckonable years, being a few weeks short of another year can change the weeks count by two (from the 2× multiplier) plus knock-on effects.
Mixed UK/Ireland careers
A prior UK redundancy does not automatically translate into Irish reckonable service. Treat each employment’s governing law separately.
Common mistakes
- Using today’s cap for a redundancy date in a previous limits year.
- Ignoring Northern Ireland or Ireland when the contract is not GB English/Welsh/Scottish.
- Treating a calculator output as a binding legal determination.
- Forgetting notice pay, holiday, and enhanced policy lines on the settlement statement.
- Entering net pay instead of the gross weekly figure the statute expects.
- Skipping the official GOV.UK or MyWelfare cross-check before challenging HR.
When to get personal advice
Seek tailored advice if you face discrimination issues, pregnancy or disability-related redundancy selection concerns, unpaid wages, insolvency, or pressure to sign a settlement agreement quickly. Free first-line help may be available from Citizens Advice (UK) or Citizens Information (Ireland); a solicitor or union can advise on your documents.
Keep copies of your contract, handbook redundancy policy, payslips covering the reference period, and every email about the consultation process. Those documents matter more than any blog article when numbers are disputed.