What does redundancy compensation mean?

What does redundancy compensation mean?

Redundancy compensation An employer can require an employee to work out their notice. If an employment agreement mentions redundancy pay, the employer will have to pay for the redundancy. However, if an employment agreement doesn’t mention any such clause, an employee isn’t legally entitled to redundancy pay.

Can an employer make you redundant and employ someone else?

Unfortunately, employers are allowed to make an employee redundant and then hire someone to do the job for lower pay. This would include an apprentice carrying out the role after the previous employee was made redundant. However, they should have offered this role (and the pay) to you before hiring the new person.

Is redundancy pay a compensation?

When you’re made redundant, you’re likely to get a mix of redundancy pay (which is compensation for your job loss) and other amounts owed to you. But holiday pay, pay in lieu of notice and any other amounts that are pay for your work rather than compensation for the job loss, are taxed as pay.

How is redundancy pay reduced for employer but not waived?

In a very interesting decision a member of the Fair Work Commission has reduced by 75% the amount of statutory redundancy payable by an employer for the redundancy of an employee on the basis that alternative employment which had been obtained for the employee by the employer and which the employee rejected was almost “other acceptable employment”.

What’s the maximum pay limit for statutory redundancy?

The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year). Pay refers to your current normal weekly pay including average regular overtime and benefits-in-kind, but before tax and PRSI deductions, that is your gross pay.

How is redundancy pay calculated if employee is on furlough?

If your employee earned less than usual because you used the Coronavirus Job Retention Scheme to put them ‘on furlough’, use what they would have earned normally when calculating their redundancy pay, not what they were paid while on furlough. Employees only qualify if they’ve worked at least 2 full years for you.

What’s the minimum notice period for redundancy in the UK?

The statutory redundancy notice periods are: at least one week’s notice if employed between one month and 2 years one week’s notice for each year if employed between 2 and 12 years Check your contract. Your employer may give you more than the statutory minimum, but they cannot give you less.

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