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A tax-free payment which may be made to an employee dismissed through redundancy.
The amount payable depends on the employee's circumstances and earnings while they were employed.
An employee may be entitled to a redundancy payment if they were dismissed from their job and:
- have been continuously employed in the job for at least two years since the age of 18;
- the dismissal was for redundancy; and
- they are not covered by any of a number of specific exclusions, e.g.
- people working outside Northern Ireland; and
- people who unreasonably refuse an offer of suitable alternative employment.
(a list of conditions and a full explanation can be found in Employment Rights Booklet ER3)
If the employer does not make the redundancy payment at the time of dismissal, the employee must claim the payment in writing within six months of the date of dismissal.
Normally by cheque by the employer.
The amount of a redundancy payment is a multiple of the customer's normal weekly gross pay, depending on their age and length of continuous employment with the employer.
It is subject to a weekly maximum which is reviewed each year.
Interpretation of the concepts of 'continuous employment', 'redundancy' and 'unreasonable refusal' of 'suitable alternative employment' are sources of legal difficulty and it may be advisable for the person to seek legal advice.
Any dispute may need to be decided by an Industrial Tribunal.
Department for Employment and Learning employment rights booklet ER3 'Redundancy Payments'. This leaflet is available from your local JobCentre or from the Department for Employment and Learning website. www.delni.gov.uk  |
