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Company Going into Liquidation/Redundancy Question

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  • 06-05-2010 9:21pm
    #1
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭


    Fogive me if this has been covered before..

    I have been just been informed by my employer that he plans to wind up the company and proceed with putting it into liquidation. So realising I'm to be made redundant I ask what the procedure is with a redundancy payment. He advised me that he unfortunatly is going to have to declare that the company cannot pay out redundancy and that it will be left to the state/social welfare to make the payment.

    I'm hoping that someone of similar experience can answer my question:

    Does this mean that I will recieve my entitled redundancy in full from the state/social welfare? I've read initially that the employer will get a rebate of 60% (assuming he forks out the full entitlement) and that the state pays out the balance.

    Yet considering he is to declare that he cannot make the payment where will that leave me?

    My one question has become two..but any feedback would be appreciated to clear this up for me..

    Thanks.


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    #2
    meganj
    Registered Users Posts: 424 ✭✭meganj


    Hi OP,

    What usually happens in a situation of redundancy when a company is till solvent is that the employer pays you your redundancy and then they get 60% back from the Dept.

    But.. As your company is going into liquidation what will hapen is you will have to apply for what is called a Lump Sum payment, the Lump Sum payment is where the Redundancy Dept pays you your full statutory entitlement (that is two weeks for every year you worked plus a bonus week) and they're supposed to claim it back off the company if it becomes solvent again. Either way you will be entitled to your statutory redundancy.

    You should give redundancy a ring (0599178990) and ask them exactly what the procedure is.


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    #3
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    Not sure if this is your question but the state will pay out the statutory amount only - 2 weeks pay per year capped at €1200 per year.

    The state won't pay out any voluntary or exgratia amounts that your employer may have paid in the past.


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    #4
    Union Advisor
    Closed Accounts Posts: 16 ✭Union Advisor


    If you face the prospect of redundancy, you maybe entitled to some form of statutory payment, the amount of the payment will depend on the amount of continous service you have with your employer, you can calculate this yourself by using the online redundancy calculator at

    http://www.redcalc.entemp.ie/

    if you are a member of a trade union they may negotiate an additional enhanced ex gratia payment on your behalf. i hope this is of some assistance to you.


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