Stage 2    On the date of termination(or just before), complete Part(B) of From RP 50
               online

Stage 3    On the date of termination, give the completed form and payment to the
               employee

Stage 4    Claim a rebate from the Department

Stage 1   Issue notice to employee

Click on Online System

Select Source: Employer, Click Next

Step 1  Click on Next to Create a New Claim

Step 2  Fill in the Employer's Details and Click Next

                   The "Payee" is the company applying for the rebate, not the employee

Step 3  Fill in the Employee's details  - Do not Click Next  

Click on Save to my Computer

                  You will get a pop-up message telling you to delete this as soon as possible. Don't delete it as you will use the information when
                  completing Part (B) on the date of termination.

This saves a PDF of Part(A) onto your desktop called, helpfully, "parta.pdf"

You wont' get any option to save it anywhere else e.g. in a confidential folder. You won't get an option to save it under a meaningful name.

For convenience and security Save a copy of it somewhere else under a meaningful name ( File, Save a Copy).

Print off the PDF.

( Click on File, Print, Current Page,  to save printing out the instructions )

Ignore the box Administrator Details.

Ignore Part(B)of the form at this stage.

Sign Part(A) in the middle of the page (not at the end) and give it to your employee.

The employee does not need to sign anywhere at this stage.

You have now given formal notice of redundancy to your employee.

Stage 2 - On Date of Termination Complete Part (B) of the form online

Click on the online form again

Select Source: Employer, Click Next

Ignore Create a New Claim

Go to Upload a Saved Claim

Browse to the saved PDF used to give notice in Stage 1

Upload

This brings you straight to:

Step 4 - fill in employment and salary information
                   Tick Employment Address if the employee works at this address. If they
                 work at a different location, fill in the address of that location.
                    Most employees are PRSI Class A - check your payroll records.

Click Next

Step 5  Calculates the amount of the redundancy payment for you

            Review the details and calculations

Clicking Next at the end of Step 5 actually submits the claim online to the Department.

This is not obvious and you get no message to tell you that this is the formal submission being made.

Step 6  Print Claim Form
            ( Click on File, Print, Current Page, 3 copies to save printing out the
                instructions three times)

Click on:  New Employee Claim if you are making a second employee redundant

 Or

 Click on Finish and it will print a receipt for you

You will now get a message telling you that your claim has been successfully submitted

Stage 3

Sign it in Blue Ink.

Get the employee to sign the three copies and to fill in the actual amount received

Give a copy to the employee with the cheque

Keep a copy for your files. (The system apparently does not save anything for you so you may wish to save a copy.)

Stage 4    Send the signed copy to:

                       Department of Enterprise Trade & Employment

                       Davitt House 

                       65 Adelaide Road            

                       Dublin 2

Reasons to Consider Contracting

Keeps your work experience current

Current work experience may be an added advantage over your fellow interviewees as it conveys the image of an active person with a can do attitude

Pays the bills

It takes practical worries off your mind so you can focus on your goals without being distracted

May lead to permanent position

The reason a company takes on contract staff may change through the course of a contract and/or new opportunities may present themselves internally so it is always worth looking out for the potential which each contract may hold

Broadens your experience

By enhancing your skill set you broaden the quantity and types of companies which may consider you for employment

Security in Permanent Jobs not Guaranteed

There is so much uncertainty in the market at the moment, that there is not necessarily more job security in a permanent role, than in a contract role

Strong Competition for each Role

There are so many candidates in the market who are immediately available; that there is real competition for every role, so keeping an open mind in your job search and definitely being open to contract makes sense

Flexibility

A choice to work or not work makes contracting more and more appealing to candidates in the current market

Why do Companies take on Contract Staff?

• No sign off for permanent position
• Restrictions on head count
• Covering a maternity Leave
• Special projects
• Backlog of work that requires urgent completion
• Holiday cover
• Cover for extended sick leave
• Potential growth down the line
• An immediate need due to headcount issues
• An immediate, interim solution to counter-act an unexpected departure

How do you win a Contract?

Available

Those considering contract work in the current market MUST be:

• available immediately or at very short notice
• in a position to commit to the duration of the contract.

Correct Fit

Employers taking on contractors are looking for someone who can hit the ground running. Being trained up in an area is not an option.

Success

Due to the high volume of candidates in the current market, the candidate who is already skilled in the area, available immediately or at short notice, and that requires no training will be successful in securing the role.

Collective redundancies arise where, during any period of 30 consecutive days, a certain number of employees in a particular establishment is being made redundant:

Particular establishment

If you have 100 employees in the company distributed over 10 shops and you close one shop employing 10 people, the normal size of the workforce in that establishment is 10, so it is not a collective redundancy.

Normal size of workforce

The normal size of the workforce is the average employed over the 12 months preceding the date of the dismissal.

The period of 30 days

This 30 days refer to the date that the notice takes effect, not the date on which notice is given. Not requiring an employee to work out their notice period has no relevance to this calculation.

You can make up to 4 people redundant in any 30 day period, without it being a collective redundancy. So if you let 4 people go on 31 May and 4 more go on 1 July, it is not a collective redundancy.

What is counted as a redundancy?

An employee with less than one year's service being let go.
An employee being made redundant before a fixed-term contract is due to expire.

What is not counted?

An employee leaving on completion of a fixed-term contract
Dismissal for reasons other than redundancy
A person voluntarily leaving who is not being made redundant

You must consult with the representatives of your employees

0. The reasons for the redundancy
0. The number and descriptions of the employees affected
0. The number and descriptions of employees normally employed
0. The period in which the redundancies will happen
0. The criteria for selection of employees for redundancy
0. The method of calculating any "ex-gratia" redundancy payment.

You must also notify the Minister

0. name and address of the employer
0. address of the establishment where the collective redundancies are proposed;
0. total number of persons normally employed at the establishment;
0. number and description or categories of employees whom it is proposed to make redundant;
0. period during which the collective redundancies are proposed to be effected;
0. reasons for the proposed redundancies;
0. names and addresses of the employees' representatives consulted about the proposed redundancies;
0. date on which those consultations commenced and the progress achieved to date of notification.

Time line

You must enter into discussions with employees' representatives 30 days before the first notice of redundancy is given

You must notify the minister at least 30 days before the redundancies take effect.

Day 1 - Begin consultations with staff representatives.

Day 30 - Give 14 days notice of redundancy to employees

Day 44 - Make employees redundant

Day 14 - would be the latest day for notifying the minister of the proposed redundancies.

It is better to have a planned process whereby you give the employees plenty of notice of redundancy. So start the discussion very early on.

Avoiding the obligations of Collective Redundancies

You can avoid the requirements of Collective Redundancies by staggering the dates of redundancies. So if employ 40 people and you are making 8 people redundant, you can make 4 people redundant on one date and the rest more than 30 days later.

But it's good practice anyway, to start consulting with staff at the earliest possible opportunity. So if redundancies look inevitable, even if you don't know how many and when, you should begin consultations with staff.

Redundancy is where a job disappears and is not replaced. It is not personal to the job holder. The Acts give 5 reasons for redundancy:

0. The closure of the employer's business, or its cessation in a particular location
0. The disappearance of the employee's job specifically i.e. the reduction in demand for  a particular kind of work
0. A reduction in the numbers of the workforce overall
0. The replacement of the employee by someone who can also do the  work in a manner "for which the employee is not sufficiently qualified or trained."
0. The replacement of the employee by someone who can also do other work for which the employee is not sufficiently qualified/trained

If an employee is employed with you for more than 12 months, they are protected by the Unfair Dismissals Act. They can take a claim to the Employment Appeals Tribunal and you will have to prove that the dismissal was fair. If the claim is successful, it could cost you up to two years' remuneration. Even if the claim is unsuccessful, it will cost you a lot of time and legal fees. In the EAT, both sides pay their own costs, so you can't recover your costs from an unsuccessful claimant.

A dismissal on the grounds will be fair if

• There are genuine grounds for redundancy - see the 5 reasons above
• The selection was fair

Setting the criteria for fair selection

An employer is entitled to set a matrix of criteria which is designed to retain a balanced workforce to enable it to continue its business. The criteria for selection must be

• Reasonable
• Applied fairly

 Such a matrix could include:

• Skills
• Experience
• Work performance
• Attendance
• Flexibility
• Disciplinary record

So an employer can select the higher performing employees for retention.

For example, in the case of Compagno v. Virgin Retail, a selection for redundancy was deemed by the Employment Appeals Tribunal to be fair, because it was based on the following carefully applied critieria:

• quality of work
• attitude and approach to work
• adaptability and flexibility
• supervisory performance
• potential
• customer focus
• product knowledge
• attendance
• length of service, if all else was equal

The criteria should be written down and applied fairly

It is important that the employees know what the criteria are so that they can argue their case for unfair selection. They should also be applied fairly.

There is no need to use Last In First Out as the basis for selection

Many employers use this as it is less easy to challenge than the more subjective performance measures. However, it would be unlikely that a simple application of the LIFO rule would leave you with the most suitable complement of staff to run your business.

An employer cannot discriminate on the grounds specified in the Equality Acts, the most common ones being

• Marital status
• Pregnancy
• Age

The employer should consult with the employee and explain why they are being selected

It is best practice to discuss with the individuals why they are being made redundant. This allows them to challenge the basis for selection. If you don't consult with them and they subsequently take a case, your position would be a lot weaker. If you explain the reasons and they accept them, their case would be a lot weaker.

You must give adequate notice
Under the Redundancy Payments Acts and the Minimum Notice and Terms of Employment Act, the following minimum notice applies

If your employment contract specifies a longer period, then the longer period takes precedence.

Use the Form RP 50 to give notice.

You must give them reasonable time off to look for a new job
However, if you are treating your employees fairly, you will give them plenty of time off to look for new jobs.

If you are making 5 or more staff redundant, it may be a collective redundancy
Collective redundancies have additional requirements which are discussed in this article.

You must give them a statutory redundancy payment if they are entitled to it

When considering making people redundant, most employers focus almost exclusively on the legalities. While these are important, there are more important business and human considerations. In fact, by giving some thought to these considerations, you will, in most cases, be complying with your legal obligations. The legal obligations are important and are dealt with in another article.

Your objectives

• To cut payroll costs
• To treat the redundant employees fairly
• To avoid claims for unfair dismissal
• To retain the key staff you need for the survival of your business
• To boost the morale of the remaining employees

These objectives are all interlinked.

For example, treating employees fairly will reduce the risk of a claim for unfair dismissal and will also boost the morale of the remaining employees.

Cutting payroll costs now secures the long term future of the company and secures the employment prospects of those key staff who remain. Although they will be upset to see their friends and colleagues losing their jobs, they will realise that this is necessary to secure their own jobs. Stress this to them.

Start the consultation process as early as possible

When there is a risk of redundancy, call the staff to a meeting and let them know that the company is looking at ways to cut payroll costs. This will have a number of benefits

• It might prompt some people to start the job hunting process, and they may leave voluntarily.
• Employees who are thinking of buying a car or a house, may defer their plans.

There may be some risks to starting the consulting process early

• Key employees may start the job hunting process

• Someone who was planning to leave, may stay to avail of a redundancy payment

Minimising the number of compulsory redundancies

• Natural attrition, career breaks and job sharing
• Terminating employees with less than one year's service
• Fair dismissal of non-performing employees
• Short-time working and temporary layoff

Natural Attrition, career breaks and job sharing

At any time, there will be employees in your company who are reviewing their options. Some may be planning on leaving over the next few months. Some may be interested in taking a year off to go travelling. Some may want to voluntarily reduce their hours. Someone may be pregnant and she has not told you yet.

If you begin the consultation process very early on, you may well bring this forward. Someone who is leaving anyway often realises that if they bring their plans forward, it will save the job of one of their friends and colleagues.

If somebody is thinking of leaving or going on a career break, the tax-free statutory redundancy payment may encourage them to bring this forward.

Some staff who may be thinking of taking a career break may be unwilling to do so in the current climate as their job may not be there when they come back. You can tell such employees that you will give them preference on their return in exchange for taking unpaid leave now.

Termination of employees with less than one year's service

Employees with less than one year's service are not covered by the Unfair Dismissals Act. If they are not performing, then they should be let go. In better times, employers often gave such employees more time to prove themselves, but employers need to be tougher in the current climate.

However, if you let go 5 or more employees even if they have less than one year's experience, it may constitute a Collective Redundancy. (link to be provided)

Good staff are hard to find, and if you have someone with less than one year's experience who has very good skills and experience and is a high performer, you should retain them. Don't go for the lazy option of Last In First Out.

Fair dismissal of non-performing employees

You should not dismiss employees to save you making them redundant. But if you have already begun the disciplinary process and it's fair to go to the next stage of it, then you should do so.

However, when selecting people for redundancy, you can use the disciplinary record as one of the criteria, so it might be easier to select that person for redundancy as there will be less risk of an Employment Appeals Tribunal case.

Short-time working and lay-off

Most employees are open to taking a cut in working hours and salaries in order to maintain as many jobs as possible. As the reduction in salary will be at the higher rates of income tax and as they will be paid Jobseekers Benefit for the days they don't work, the drop in income might not be too severe for low to mid-level employees. If you choose this option, check out this article to maximise the benefits for your employees.

Sustaining morale during the redundancy process

The best way to sustain morale is to treat people fairly. If there is a widespread perception that the process is unfair, there will be a serious morale problem. By engaging in extensive group and individual consultations, you can maintain the morale.

Most organisations which make people redundant, let them go immediately they give them notice. This is done on the grounds that they don't want them to be around being negative and affecting other staff. On the other hand, telling someone on Friday that they are not wanted on Monday can seem too brutal. It gives the redundancy the flavour of a dismissal.

Retaining Key Staff

You should speak on a one-to-one basis with all staff and not just those whom you have identified for redundancy. The redundancy process is very unsettling and some of your key staff may well leave. The more skilled staff are more likely to find it easier to get jobs. You should sit down with these staff and discuss their career with them. Let them know that they are key to the success and survival of the company. Ask them their ideas on reducing staff and avoiding redundancies. They will feel more empowered.

If you have a voluntary redundancy scheme, let them know that you do not want them to apply for the scheme.

Key staff may feel guilty that they have been retained while their colleagues have been let go. Let them know that they deserve to retain their job due to their higher performance or skills.

Boosting the morale of the workforce post redundancy

The redundancy process is very destabilising. Employees will be worried about their jobs and their finances. Look for opportunities to boost morale

• Meet all the employees on a one to one basis to discuss their concerns
• Consolidate the office into fewer rooms to avoid empty desks
• Have a team building event
• Stay in touch with former employees and help them to find jobs

Have a staff meeting after the redundancies are finished

• Explain again the reasons for the redundancies
• Give a trading update and outline of plans
• Encourage them to help their departed friends
• Discuss how the workload will be distruted among fewer employees
• Look for suggestions on building the business

As an employer with contacts and resources you are in a good position to help your departing employees find jobs. Doing so helps boost the atmosphere and morale when it needs it most. And this is all part of treating people fairly.

So what can you do to help them?

Use your Network

You're the line manager/managing director/human resources professional who has built up a good professional network during your career. Now it's time to put it to use.

Think about who you could put your employee in touch with. People you know who may be recruiting at the moment or who can perhaps refer them to someone else. Very often people will secure their next position through a contact.

Employers should recommend a good recruitment company to the departing employee that they have successfully used themselves to hire staff. A personal recommendation from an employer will ensure the recruitment consultant puts the new candidate at the top of their priority list.

Be Flexible with Time

Your employees are looking for, and hopefully, interviewing for new jobs. Allow them some flexibility with their hours. If this means them leaving the office early for an interview make sure they know you're happy with this so they can make plans. By law, you are obliged to give them reasonable time off to look for another job.

Allow Access to Job Boards

If you've blocked access to job boards and recruitment agency sites, perhaps unblock them during certain times of the days so that people can search for jobs. Allow them to make calls to follow up on their CVs for half an hour a day?

Offer Advice - Ask another employee to act as Job Coach

It may be quite some time since some of your employees have been on the job market. You've interviewed people over the years and know what's expected. Perhaps offering them advice on their CV or on interviews would be useful to them.

Outplacement Services

Many companies offer to pay for outplacement services for their employees.  Such services can include:

• Strategic Job Searching Skills
• Career Guidance
• CV Advice & Design
• Interview Training
• Office and internet facilities

Our consultants would be delighted to provide these services to your staff on an individual or group basis. Please click here for further details.

Use of your Office Space

For employees that have already finished up in your company perhaps you could offer them an hour or two per week to use any extra computers you have in your office? This would be really helpful for job searching since some people will have to use internet cafes if they don't have internet access at home.

References

Ensure to reiterate to the departing employee that will receive a very strong reference and recommendation. This helps reduce their anxiety somewhat as a good reference is essential to securing a new role and will provide added comfort to them.

Managing Employees Exit from the Business

The weeks between being made redundant and actually leaving their job are very testing ones for departing employees. It is important that they are not marginalised during this time. Management should encourage an open door policy to allow for questions and queries on redundancy. Moreover the management team should make a conscious effort to interact with departing employees during their final weeks to ease their transition out of the firm.

If you have less than 1 year's service, you have very few rights. You are not covered by the Unfair Dismissal Acts, so you can't claim unfair dismissal or unfair selection for redundancy at the Employment Appeals Tribunal.

You do not qualify for a statutory redundancy payment.

You are entitled to two weeks' notice of redundancy or more if your employment contract specifies more. Theoretically the employer could dismiss you and would only have to give you one week's notice.

I have less than 2 years' service

You are covered by the Unfair Dismissals Act, so the redundancy must be genuine and the selection must be fair.

You do not qualify for a statutory redundancy payment.

You are entitled to two weeks notice of redundancy or more if your employment contract has a higher notice period.

Notice

Under the Redundancy Payments Acts and the Minimum Notice and Terms of Employment Act, the following minimum notice applies

If your employment contract specifies a longer period, then the longer period takes precedence.

Can I leave before the notice expires?

Yes. Fill in form RP6. You are still entitled to your redundancy payment.

How much statutory redundancy am I entitled to?

You have to have a minimum of 2 years service.

You will get two weeks salary for every year + one bonus week.
If you earn more than €600 per week, it is calculated based on €600 per week.

So for someone with 4.5 years service who earns €800 per week

Try our simple redundancy calculator.

But some employers pay huge lump sums to their employees?

This is at the discretion of the employer and is often demanded by the Trade Union. But you have no right in law to any payment other than the statutory redundancy payment.

You are entitled to reasonable time off to look for a job

Your employer is obliged to give your reasonable time off to look for a job.

You are entitled to be fairly selected for redundancy

Check out this article: Redundancy of Unfair Dismissal?

Can I be made redundant while pregnant?

Yes. But an employer should not select you for redundancy because you are pregnant. Fuller discussion

Can I be made redundant while on maternity leave?

Your employer is not allowed to give you formal notice of redundancy while you are on maternity leave or extended maternity leave. 

On your return from maternity leave, your employer will give you formal notice and your date of redundancy will be the date that the notice expires. This would be minimum notice set out in the Redundancy Acts or the notice period set out in your contract if that is higher.

Your employer can and should inform you that you will be made redundant on your return.

You should probably take the maximum extended maternity leave as you will continue to accrue holiday pay and the statutory redundancy will be higher as your length of service will be higher.

Collective Redundancies

Where the company is making a large number of employees redundant, they must give the Minister 30 days' notice and consult with the unions or employees to see if there are any alternatives to redundancy.   

A large number is defined as follows:

The issues to be discussed include:

• Possibility of avoiding redundancy
• Selection process
• Reasons for redundancy
• Categories of employees to be made redundant
• Any ex-gratia payments

Solicitors and consultants who help employees with claims

http://www.hr-sos.ie/  

What option is open to an employee when their employer disputes their right to a lump sum? 

They can bring a case to the Employment Appeals Tribunal under the Redundancy Payments Acts, 1967 to 2003. The Tribunal is an independent body and provides a speedy, fair, inexpensive and informal means for individuals to seek remedies for alleged infringements of their statutory rights, including rights to their correct statutory redundancy payment. (source: DETE FAQ)

What happens if an employer refuses to pay redundancy?

The employee should first send him Form 77, applying for a redundancy payment. If the employer continues to refuse, but agrees to fill out and sign RP50 (redundancy Certificate), thereby acknowledging the employee's right to a payment, as opposed to actually making the payment, the employee can then apply to Redundancy Payments Section of the Department for payment from the Social Insurance Fund (SIF). If the employer does not even agree to signing Form RP50, then the employee can apply to the EAT. If successful, they can firstly ask the employer again for payment. If he again refuses, they can apply to Redundancy Section for payment from the SIF. (source: DETE FAQ)

• Keeping them informed and involved
• Exploring alternatives to redundancy
• Helping them to find new jobs
• Treating them with dignity and respect
• Helping them to understand the process
• Timing the redundancy to maximise their entitlements

Sometimes the redundancy process is dictated by the lawyers. And while you have to comply with the law, you can go beyond your legal obligations without it being an expensive process.

This makes good business sense for a number of reasons

• They are more likely to remain motivated while they continue to work for you
• Those employees who remain behind will feel better about the process
• When the business environment improves and you are recruiting again, you will find it easier to attract staff
• People who have been treated fairly are less likely to take legal claims which are time consuming and potentially expensive.
• If legal claims are taken against you, you will defend them better if the process has been fair

Avoid

• Sending a group email to people telling them they are losing their job
• Sending texts or leaving voicemails for people telling them that they are losing their jobs
• Don't call people in on a Friday and tell them not to show up for work on Monday

Keep employees informed about the state of the business

Most employees are worried about their jobs in the current business environment, even if they have not been told that their jobs are at risk. Even if redundancies are not planned immediately, have a briefing for staff. Let them know that all options are under consideration. Your employees are not stupid. Your employees are not unrealistic. They read the newspapers and they can see that the level of business has dropped.

Giving employees plenty of notice will encourage them to start looking for alternative employment. Natural attrition is the best way to reduce staff.

Giving plenty of notice allows staff to plan their finances. Some people are unrealistic and might be about to take on a car loan or mortgage.

Explain that cuts are needed for the long term survival of the business.

Again, most employees are realistic and understand that the company cannot lose money for a long time or else it will go bust. While no one wants to lose their job, those who remain will appreciate that the management are in control of the destiny of the company.

As soon as you think about reducing staff, start consulting with staff

Don't present staff with a done deal. Tell them that business has dropped and fewer staff will be needed. Look for their ideas on how to trim costs.

A well planned gradual reduction in staff is better than a sudden slashing of staff

A well planned gradual reduction lets your staff know that you are approaching this in a systematic and planned manner. Slashing staff suddenly creates a sense of panic for all staff including those who are remaining behind.

Some employees will welcome redundancy

If they are thinking of leaving anyway to travel or to change their career, then they might welcome the tax-free statutory redundancy payment.

Consider the alternatives

• Speeded up natural attrition
• Career breaks
• Job sharing
• Reduced hours

Lead by example

When you are asking staff to cut back, don't splash out on new cars for the top management.

This is a very important issue which most employees and their employers do not give adequate attention to. The different factors can interact with each other but here are some of the factors to consider.

You should be flexible and choose a date which suits your employee to maximize their benefits and entitlements as they usually cost the employer very little.

Is the employee just short of working in total for 2 years?

If they have less than 2 years' PRSI contributions, they won't qualify for Jobseekers Benefit. So an extra few weeks could make all the difference.  It does not matter that they worked for different employers.

Are they just short of 2 years' service with you?

Statutory Redundancy is paid to people with a minimum of 2 years' service with their existing employer.

So if they have been employed for 1 year and 364 days, they will get nothing.

If they have been employed in your existing job for 2 years, they will get 5 weeks' statutory pay up to a maximum of €3,000. This will cost you, the employer €1,200 but they will get the €3,000 tax-free.

After two years' service it does not matter that much.

Are they just short of working in total for 5 years?

If they have at least 5 years' PRSI contributions in total since they started working, then they will get Jobseekers Benefit for 12 months. If they have less than 5 years' PRSI, they will only get 9 months Jobseekers Benefit.

Is it better for them to be made redundant in late 2009 or early 2010?

If they are made redundant in 2009, their claim for Jobseekers Benefit will be based on their PRSI contributions for 2007.  If they are made redundant in 2010, their Jobseekers Benefit will be based on 2008.  For example, if they had fewer than 39 weeks PRSI contributions in 2007 but worked the full year in 2008, they would be better off changing the date to 2010.

If they are getting a lump-sum payment, some of which might be taxable, they would be better off being made redundant in the year which has the lowest marginal tax rates. So if the tax rates in 2010 are higher than 2009, they should get made redundant before the end of the tax year.

However, if they don't expect to have taxable income in 2010, then the rates for them may be lower.

Another factor is that after the end of the tax-year, they will get top-slicing relief on any tax paid on your lump-sum. If they are made redundant in December, they will get this relief immediately. If they are made redundant in January, they will have to wait a whole year.

If they are pregnant...

If they are made redundant within 16 weeks of the due date, they will get Maternity Benefit  for 6 months and then Jobseekers Benefit for up to 12 months. If they are made redundant just short of the 16 weeks, they will probably not get any Maternity Benefit.

This is discussed in more detail in the section on Pregnancy and Redundancy

If your employee's days at work are reduced temporarily, they will get one fifth of the weekly rate of Jobseekers Benefit for each day that they are unemployed. So if they are entitled to the personal rate of €204.30 and their working week is reduced to a three day week, they will get €40.86 per day or €81.72 for the two days.

They do not get any payment for the first three days of any Jobseekers Benefit claim, so if they are on a three day week, they will get no payment for the first week and they will get only one day the following week. After that, they will get two days per week.

If they are unemployed for only one day per week, they are not entitled to Jobseekers Benefit. I have heard that, in practice, people are paid for this, but I have been unable to verify it.

If their days at work are reduced permanently, they will get one sixth of the weekly rate of Jobseekers Benefit. So if they are entitled to the personal rate of €204.30 and their working week is reduced to a three day week, they will get €34.05 per day or €68.10 for the two days.

If they work week-on/week-off or month-on/month-off, they will get the Jobseekers Benefit for that full week or month.

If they normally work an 8 hour day, but reduce it to a 6 hour days, they will not be entitled to any Jobseekers Benefit. They get Jobseekers Benefit only for days on which they do no work.

If they voluntarily agree with a colleague to job share, they are not entitled to Jobseekers Benefit. So it's important to get a letter from you to say that the short-time working is not voluntary.

The taxation of Jobseekers Benefit

From the Revenue Guide  Taxation of Jobseekers Benefit

This is important. The Revenue's definition of "short-time" working is different from the definition used by Social Welfare. So if they have a choice of week on/week off or month on/month off, they should opt for week on/week off.

An employee on short-time working can claim redundancy

Under the Redundancy Payments Acts, short-time working is defined as "where an employee's working week decreases to less than half of his normal weekly hours or his pay is less than half of his normal take home pay and the situation is not considered to be permanent"

If they have been kept on short-time for 4 consecutive weeks or for 6 weeks over a 13 week period, they can claim redundancy. If you can guarantee them work for 13 consecutive weeks, then you do not need to make them redundant. If you do make them redundant, they will get statutory redundancy, but not payment in lieu of notice as they will be terminating the contract voluntarily.

Lay-off

You have no right in law to lay an employee off. However, most employees accept it voluntarily as an alternative to being made redundant. They can demand to be made redundant instead of being laid off temporarily.