Redundancy Payments Guidelines and Procedures

Rebates to Employers

An employer who has paid his/her employee their correct statutory redundancy lump sum can apply to the Department for a 60% rebate within six months of payment.
In the first instance, the employer must give the employee at least two weeks notice. The Form RP50 may be used.
The employer should give the employee a Redundancy Form RP50 on the date of payment, showing the basis on which the sum was calculated, and confirming receipt of payment. Copy containing an original signature of both employee and employer and “Amount Recd by Employee” box completed in blue ink, should also be sent to the Department. There should be no tippexed entries in Form RP50. Where the RP50 is completed manually, BLOCK CAPITALS should be used.

Where the employers have failed or refuses to pay their employees their statutory redundancy entitlements, the employee can apply to the Department for direct payment from the Social Insurance Fund. The RP50 form should be used for this purpose.
Such a lump sum cannot be paid unless the employee's entitlement has first been established by a Redundancy Form RP50 given by the employer. If an employer refuses to complete the RP50, a favourable decision of the Employment Appeals Tribunal is required along with form RP50 completed by the employee.
If the employer is not in a position to pay the statuatory redundancy to their employees then they should sign the RP50 form and submitt the following information:
- A letter from Accountant or solicitor confirming that the company is not in a position to pay and accepting liability for the 40% owing to the Social Insurance Fund. This confirmation must be based on their own professional view of your finances rather than a view based on information provided by the company and they must be able to support this confirmation should an audit be carried out at any time and if available
- Documentary evidence i.e Audited accounts/statement of affairs which has been signed by auditor/accountant.
- Claims submitted without this information will be returned to the sender.

Redundancy claims are examined and decided strictly in accordance with the legislation (Redundancy Payments Acts, 1967 to 2007).

The RP50 form must be provided by the employer to the employee at least two weeks before date of termination of employment as notice of termination.

A fully completed RP50 should be forwarded to the Department by the employer to claim 60% rebate from the S.I.F. It may also be used by the employee to claim redundancy payment from the S.I.F. in situations where the employer cannot or will not pay.
Where an employee put on lay-off or short-time working by his or her employer claims redundancy from that employer, s/he may do so on Form RP9 (a non-statutory form).

Employer's Claim for Rebate from the Social Insurance Fund - when the employer has paid statutory redundancy to an employee/employees, the form RP50 should be completed to claim for 60% rebate of the statutory lump sum(s) paid.
Employee's Application for Lump Sum from the Social Insurance Fund - when an employee has been made redundant but the employer has failed to pay the statutory redundancy lump sum, the employee can apply, on this form, to have the lump sum paid from the Social Insurance Fund.
Where the employee's entitlement to redundancy has been established by a decision of the Employment Appeals Tribunal, the employer has failed to effect that decision, and the employee then claims his/her statutory redundancy lump sum from the Social Insurance Fund. Where, however, the employer has effected the decision of the Employment Appeals Tribunal and subsequently claims a rebate from the Social Insurance Fund, a completed RP50 is required.

Last modified: 02/02/2010