The rules on severance pay in detail

Employees with at least two years’ service who are dismissed on grounds of redundancy are entitled to a statutory redundancy payment. This is calculated as follows:

  • two normal weeks' pay for each year of continuous employment (over the age of 16 years); plus
  • one additional week's pay.

A week’s pay is capped at EUR 600. Sometimes employers have contractual redundancy pay schemes that are more generous than the statutory redundancy payment. 

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Author: Lewis Silkin LLP Ireland 

Date: December 2019