Payment in lieu of notice.....?

spence101

Hello, I, along with several other staff have recently been made redundant, we were all part time. I arrived in the shop to be given my P45 and told that the shop would be closing that night. We have been promised our minimum redundancy and any other moneys, holiday pay etc.

Checking citizens information it mentions that i should have been given a RP50 form and given notice to our impending redundancy.

It also mentions payment in lieu of notice, are part time staff entitled to such payments?

What sort of payment is minimum, 2 weeks?

Are staff members that weren't entitled to minimum redundancy entitled to payment in lieu of notice?

Thanks for any help, im a little bit uprepared as this was sprung onto us form nowhere.

Nody

You, and any one else, is entitled to the payment for your notice period.

gerrycollins

its all relative to how long you wokred there.

Firstly you must split the two issues the first been your holiday pay/wages owed and notice payment. As the way it closed immediately you are entitled to a notice payment relative to your length of service. up to one year is one week and over one year is two weeks along with any due wages. you are also entitled to any outstanding holiday pay that you have accrued. If your employer is unable to pay these payments their administrator(liquidator/recievership) can apply to a government fund for these payments. They are subject to the usual PAYE/PRSI and you will get the remainder.

for redundancy you are only entitled to it so long as you are over 16 and in continous employment for 2 years. If you quailify then you are entitled to 2 weeks pay(capped at €600 per week) per year of service and a bonus week.
This lump sum is tax free and again if your employer is unable to pay there is another PRSI funded fund that will pay out on behalf of your employer. However you employer has to make the application using the rp50 form and get you to sign it. You will need a copy of the rp50 form for social welfare and for your own records because claims made against the fund are taking up to 11 months to process.

ie if you are 20 yrs old and have been employed for the last three years and your weekly net wage is €100 then you are entitled to

€100 x 2(weeks per year service) x 3 (years service) + bonus week=€700

if you earn €800 per week then

€600(cap) x2 x3+1=€4200

An issue I came across was a girl that worked for me started before she was 16. so when it came to the redundancy the calculation process reset her birthday until she was 16 and then calculated her years service from there which turns out she was not employed for over 2 years at a min age of 16.

spence101

Cheers for the help,

So can we expect to be waiting close to a year for our redundancy payments after we sign the rp50?

But our payments in lieu of notice and holiday pay should be sorted by the liquidator?

gerrycollins

spence101 wrote: »

Cheers for the help,

So can we expect to be waiting close to a year for our redundancy payments after we sign the rp50?

But our payments in lieu of notice and holiday pay should be sorted by the liquidator?

if your employer has no money to pay you then dont be sitting waiting for your redundancy money.

As for the liquidator role it's up to your employer to get one appointed etc so thats also a waiting game sadly but not as long as the other.

dudara

Some extra information from Citizen's Information

In the first instance it is up to the employer to pay the statutory redundancy lump sum to all eligible employees. The Social Insurance Fund (SIF) finances the 60% redundancy rebate payment to employers who pay their eligible employees their full statutory redundancy entitlements. However, where the employer is unable to pay or refuses or fails to pay, the Department of Enterprise, Trade and Innovation steps in and makes a payment from the SIF.

Where your employment has been terminated due to the insolvency of your employer legislation provides for the payment of certain outstanding entitlements in relation to your pay. Under the Insolvency Payments Scheme these may be paid by the Department out of the Social Insurance Fund. There is further information about employers' insolvency legislation in More about this topic.

On the date of the termination of employment your employer must pay the redundancy lump sum due to you and give you a "Redundancy Certificate" - section B of form RP50.

If your employer has not paid your redundancy lump sum, you should apply to your employer for it using form RP77 (pdf). If your employer still refuses to pay it, you can apply to the Department of Enterprise, Trade and Innovation for direct payment from the Social Insurance Fund using form RP50 (pdf) as follows:

* If your employer is unable to pay your redundancy lump sum, he should sign the RP50 and submit a letter from an accountant or solicitor stating he is unable to pay and accepting liability for the 40% owing to the Social Insurance Fund together with documentary evidence such as audited accounts
* If your employer refuses to pay your redundancy lump sum or if there is a dispute about redundancy you can bring a claim to the Employment Appeals Tribunal using the application form TI-A. This must be done within one year of your dismissal. To apply for your lump sum you should send a completed form RP50 together with a favourable decision from the Employment Appeals Tribunal

You can find information about redundancy payments guidelines and procedures as well as a list of frequently asked questions about redundancy on the website of the Department of Enterprise, Trade and Innovation. Further information about redundancy entitlements is in this Guide to the Redundancy Payments Scheme (pdf).

For further information about the Redundancy Payments Scheme contact the Information Services of the National Employment Rights Authority (NERA).

I think the key thing here is to get the paperwork processed as soon as possible.