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Working reduced hours as an alternative to redundancy - Money Advice Service

Redundancy generally occurs where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff. The reason could be the financial position of the firm, lack of work, reorganisation within the firm or the firm may be closing down completely. If you have worked for your employer for 2 years you may be entitled to a redundancy payment. Redundancy payments legislation provides for a minimum redundancy payment for employees who have a set period of service with their employer.

You and your employer may agree a redundancy payment which is above this statutory minimum. There are specific procedures your employer must follow when making you redundant such as giving you at least 2 weeks' notice and paying your redundancy payment on the date you finish work. If you are dismissed and it is not a redundancy situation you should find out more about your rights under the unfair dismissals legislation. Apart from some exceptions, you must have at least 12 months' continuous service with your employer in order to bring a claim for unfair dismissal.

In most cases your employer has to prove that the dismissal was a fair one, that is, that there were fair grounds for the dismissal and that fair procedures were followed. Redundancy is considered a fair ground for dismissal but selection for redundancy based on certain grounds such as pregnancy or religious or political opinions is considered an unfair ground. You are entitled to bring a claim for unfair dismissal if you think that you were unfairly selected for redundancy or consider that a genuine redundancy situation did not exist.


However, if you make a claim for unfair dismissal, you cannot also claim redundancy. When you lose your job you have certain entitlements. You are entitled to a statutory minimum period of notice if you have worked at least 13 weeks for your employer.

Your written contract of employment may provide for a longer period of notice. When you leave work you are entitled to receive a payment for annual leave which you have earned but not taken. The ending of employment is the only situation where it is legal to pay an employee instead of giving annual leave.

Your employer must give you forms P45 and P60 which are statements of your pay and the tax and PRSI deducted by your employer. You get a P45 when your job ends and you get a P60 at the end of each tax year. Further information on the legislation surrounding redundancy and your entitlements can be found of the following websites: CitizensInformation.

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Redundancy can be both devastating and liberating. On the one hand it's very tough realising there are going to be job cuts and you've been chosen to go before someone else.

How to make someone redundant in a small business

On the other hand you may like a change in direction anyway and suddenly losing your job doesn't seem such a bad idea after all. You can actually turn it into a very positive experience. But the fact remains, being made redundant from your job can be mentally, physically and emotionally draining. It's a dramatic change, and one which you need to deal with emotionally head on. There are five emotional stages in any bad news situation and redundancy is no different. The five stages are as follows:.

Disbelief and Denial - "I can't have lost my job" In an attempt to lessen the shock, we refuse to accept the facts. We tell ourselves that the boss or company will have a change of heart and everything will return to normal. Anger - "I can't believe they did this to me" When reality sets in, we may lash out at whomever we feel is responsible for the loss or at the people closest to us. Bargaining - "If only I can talk to my boss maybe I can get my job back" We want to negotiate, either directly with the boss or with ourselves, by promising to do better this time, if given the chance.

Grief and Depression - "What is the point of carrying on? Acceptance - "Ok, I've lost my job but it's time to move on" We gain control of our emotions and begin the healing process by accepting that we've lost our job, and starting to look toward the future. All of these stages are normal and should not be suppressed. However, the sooner you can get to the acceptance stage, the better off you will be.

Only then will you be able to change focus and begin projecting the positive image and optimistic attitude that is necessary for success. One of the most important factors to consider is your financial situation. If they can't pay because they're insolvent, you might be able to get the money from the Government.

Ask a lawyer

If you are not paid or unhappy with your payment you must apply to an employment tribunal. You need to make a claim within six months, otherwise you might lose the right to a payment. If you beleive that you are being unfairly dismissed then you should make an official complaint to your employer and follow this up by going to an employment tribunal. You must provide evidence of why this is the case and challenge your employer's redundancy measures.

You need to have one year's service to make a claim for unfair dismissal.

Redundancy Process: How To Handle Redundancy As An Employer

Our free weekly newsletter is packed with tips on making money and saving money. Find out more or just enter your email If you have been told that you will be made redundant, then you could make a case to argue against your role being axed or for a new position elsewhere. Unfortunately, with most redundancies a cost-cutting measure, you will be up against it from the start, but that does not mean it is not worthwhile.

Sometimes employees are willing to forego short-term gains for long-term security and this may mean giving up benefits, requesting a reduction in working hours, a job share, or even offering to take a pay freeze or cut. The more flexible and useful you can prove yourself to your company, the more likely you will be to stave off redundancy. As the threat of recession looms there has been a surge in inquiries for accident, sickness and unemployment insurance, which is designed to pay an income for a short time if you have no work. This comes in a number of different forms but is often costly and comes with catches that may invalidate the cover.

Those looking for cover should avoid costly policies offered by mortgage and personal loan lenders and instead look for a stand-alone policy. Stand-alone income insurance can pay a replacement income for up to 12 months after you lose your job.

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Policyholders made redundant usually wait between three and six months after losing their job before payments start. Typically, they can be claimed for up to 12 months if the policyholder is unable to find work. The cost of income protection insurance has risen, as job security becomes more uncertain. Those working in industries that have seen heavy cuts may find it harder to get cover. Some links in this article may be affiliate links.

If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products.

Redundancy Tip Number 1 - Change Your Employer’s Mind

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