Redundancy Payments Act 1967

SCHEDULE 3

Amount of Lump Sum

F113 [ 1.       (1) The amount of the lump sum shall be equivalent to the aggregate of the following:

( a ) the product of two weeks of the employee s normal weekly remuneration and the number of years of continuous employment from the date on which the employee attained the age of 16 years with the employer by whom the employee was employed on the date of dismissal or by whom the employee was employed when the employee gave notice of intention to claim under section 12, and

( b ) a sum equivalent to the employee s normal weekly remuneration.

(2) In calculating the amount of the lump sum, the amount per annum to be taken into account shall be that obtaining under section 4(2) of the Redundancy Payments Act 1979 at the time the employee is declared redundant. ]

F113 [ 2. If the total amount of reckonable service is not an exact number of years, the excess days shall be credited as a proportion of a year. ]

F113 [ 3. ( a ) For the purpose of ascertaining, for the purposes of paragraph 1, the number of years of continuous employment, the number of weeks in the period of continuous employment shall be ascertained in accordance with this Schedule and the result shall be divided by 52.

( b ) In ascertaining the number of weeks in the period of continuous employment, a week which under this Schedule is not allowable as reckonable service shall be disregarded. ]

Continuous Employment

4. For the purposes of this Schedule employment shall be taken to be continuous unless terminated by dismissal or by the employee’s voluntarily leaving the employment F114 [ , but for the purposes of this paragraph dismissal does not include a dismissal within the meaning of the Unfair Dismissals Act, 1977 , and in respect of which redress has been awarded under section 7 (1) ( a ) or 7 (1) ( b ) of that Act ].

F115 [ 4A. Notwithstanding anything in paragraph 4 (and anything in clause ( b ) of the definition of date of dismissal in section 2), the period of notice due to an employee under section 4 (2) ( a ) of the Minimum Notice and Terms of Employment Act, 1973 , but not given by the employer, shall, where the Tribunal so orders, be allowed as continuous service for redundancy purposes where, but for the failure of the employer to comply with the provisions of that Act, the employee would have qualified for redundancy payment. ]

F116 [ 5. Where an employee s period of service has been interrupted by any one of the following

( a ) any period by reason of

(i) sickness,

(ii) lay-off,

(iii) holidays,

(iv) service by the employee in the Reserve Defence Forces of the State,

(v) any cause (other than the voluntary leaving of the employment concerned by the employee) not mentioned in clauses (i) to (iv) but authorised by the employer,

F117 [ ( b ) a period during which, in accordance with the Adoptive Leave Acts 1995 and 2005, an adopting parent was absent from work while on adoptive leave or additional adoptive leave or while attending certain pre-adoption classes or meetings, ]

F118 [ ( c ) a period during which an employee was absent from work

(i) while on protective leave or natal care absence, within the meaning of Part IV of the Maternity Protection Act 1994 or to attend ante-natal classes in accordance with section 15A (inserted by section 8 of the Maternity Protection (Amendment) Act 2004), or for breastfeeding in accordance with section 15B (inserted by section 9 of the Maternity Protection (Amendment) Act 2004), of the first-mentioned Act,

(ii) while on parental leave or force majeure leave, or

(iii) while on carer s leave under the Carer s Leave Act 2001, ]

( d ) any period during which an employee was absent from work because of a lock-out by the employer or because the employee was participating in a strike, whether such absence occurred before or after the commencement of this Act,

F119 [ (e) any period during which an employee was absent from work while on paternity leave or transferred paternity leave under the Paternity Leave and Benefit Act 2016, ]

F120 [ (f) any period during which an employee was absent from work while on parent s leave or transferred parent s leave under the Parent s Leave and Benefit Act 2019, ]

continuity of employment shall not be broken by such interruption whether or not notice of termination of the contract of employment has been given. ]

F121 [ (5A) If an employee is dismissed by reason of redundancy before attaining the period of 104 weeks referred to in section 7 (5) (as amended) of the Principal Act and resumes employment with the same employer within 26 weeks, his employment shall be taken to be continuous. ]

F122 [ 6. Where a trade or business or an undertaking (whether or not it be an undertaking established by or under an Act of the Oireachtas), or part of a trade or business or of such an undertaking, was or is transferred from one person to another, the period of employment of an employee in the trade, business or undertaking (or in the part of the trade, business or undertaking) at the time of the transfer shall count as a period of employment with the transferee, and the transfer shall not break the continuity of the period of employment. ]

Reckonable Service

7. For the purposes of this Schedule, a week falling within a period of continuous employment and during which (or during any part of which) the employee concerned either was actually at work, or was absent therefrom by reason of sickness, F123 [ a dismissal within the meaning of the Unfair Dismissals Act, 1977 , and in respect of which redress has been awarded under section 7 (1) ( a ) or 7 (1) ( b ) of that Act, ] holidays or any other arrangement with his employer shall, subject to paragraph 8, be allowable as reckonable service.

F124 [ 8. During, and only during, the 3 year period ending with the date of termination of employment, none of the following absences shall be allowable as reckonable service

( a ) absence in excess of 52 consecutive weeks by reason of an occupational accident or disease within the meaning of the Social Welfare (Consolidation) Act 1993 ,

( b ) absence in excess of 26 consecutive weeks by reason of any illness not referred to in subparagraph ( a ),

( c ) absence by reason of lay-off by the employer.

8A. The following absences shall be allowable as reckonable service:

F125 [ ( a ) a period during which, in accordance with the Adoptive Leave Acts 1995 and 2005, an adopting parent was absent from work while on adoptive leave or additional adoptive leave or while attending certain pre-adoption classes or meetings, ]

F126 [ ( b ) a period during which an employee was absent from work ]

(i) while on protective leave or natal care absence, within the meaning of Part IV of the Maternity Protection Act 1994 or to attend ante-natal classes in accordance with section 15A (inserted by section 8 of the Maternity Protection (Amendment) Act 2004), or for breastfeeding in accordance with section 15B (inserted by section 9 of the Maternity Protection (Amendment) Act 2004), of the first-mentioned Act,

(ii) while on parental leave or force majeure leave, or

(iii) while on carer s leave under the Carer s Leave Act 2001,

F127 [ (ba) a period during which, in accordance with the Paternity Leave and Benefit Act 2016, an employee was absent from work while on paternity leave or transferred paternity leave within the meaning of that Act, ]

F120 [ (bb) a period during which, in accordance with the Parent s Leave and Benefit Act 2019, an employee was absent from work while on parent s leave or transferred parent s leave within the meaning of that Act, ]

( c ) any absences not mentioned in F128 [ paragraphs (a), F129 [ (b), (ba) or (bb) ] ] but authorised by the employer. ]

9. Absence from work by reason of a strike in the business or industry in which the employee concerned is employed and which occurred before the commencement of this Act shall be allowable as reckonable service.

F130 [ 10. During, and only during, the 3 year period ending with the date of termination of employment, absence from work by reason of a strike in the business or industry in which the employee concerned is employed shall not be allowable as reckonable service. ]

11. Absence from work by reason of a lock-out shall be allowable as reckonable service.

12. Absence from work by reason of a strike or lock-out in a business or industry other than that in which the employee concerned is employed shall be allowable as reckonable service if it occurred before the commencement of this Act.

Normal Weekly Remuneration

13. For the purposes of this Schedule, in the case of an employee who is paid wholly by an hourly time rate or by a fixed wage or salary, and in the case of any other employee whose remuneration does not vary in relation to the amount of work done by him, his normal weekly remuneration shall be taken to be his earnings (including any regular bonus or allowance which does not vary in relation to the amount of work done F131 [ and any payment in kind ]) for his normal weekly working hours as at the date on which he was declared redundant, together with, in the case of F132 [ an employee who is normally expected to work overtime ], his average weekly overtime earnings as determined in accordance with paragraph 14.

14. For the purpose of paragraph 13 the average weekly overtime earnings shall be determined by ascertaining the total amount of overtime earnings of the employee concerned in the period of 26 weeks which ended 13 weeks before the date on which the employee was declared redundant and dividing that amount by 26.

15. For the purpose of paragraph 14 any week during which the employee concerned did not work shall be disregarded and the most recent week before the 26-week period mentioned in paragraph 14 shall be taken into account instead of the week during which the employee did not work.

16. (i) In the case of an employee who is paid wholly or partly by piece rates, bonuses or commissions (being piecerates, bonuses or commissions related directly to his output) and in the case of any other employee whose remuneration varies in relation to the amount of work done by him, his normal weekly remuneration shall be taken to be the amount as calculated in accordance with subparagraph (ii).

(ii) For the purposes of subparagraph (i) normal weekly remuneration shall be calculated by dividing the remuneration to be taken into account in accordance with subparagraph (iii) by the number of hours ascertained in accordance with subparagraph (vi) and multiplying the resulting hourly rate by the normal weekly working hours of the employee concerned at the date on which he was declared redundant.

(iii) The remuneration to be taken into account for the purposes of subparagraph (ii) shall be the total remuneration paid to the employee concerned for all the hours worked in the period of 26 weeks which ended 13 weeks before the date on which the employee was declared redundant, adjusted in respect of any variations in the rates of pay which became operative during the period of 13 weeks ending on the date on which the employee was declared redundant.

(iv) For the purposes of subparagraph (iii), weeks worked with different employers may be taken into account if the change of employer did not affect the employee’s continuous employment as provided by paragraphs 4 to 6.

(v) For the purposes of subparagraph (iii), any week during which the employee did not work shall be disregarded and the most recent week before the 26-week period mentioned in subparagraph (iii) shall be taken into account instead of the week during which the employee did not work.

(vi) The number of hours to be taken into account for the purposes of subparagraph (ii) shall be the total number of hours worked in the period of 26 weeks mentioned in subparagraph (iii).

17. Where an employee receives additional remuneration for working more than a fixed number of hours, that fixed number of hours shall, for the purposes of paragraphs 13 and 16 (ii), be taken to be his normal weekly working hours, unless by his contract of employment he is required to work for more than that fixed number of hours, and in the last mentioned case the higher number of hours required by the contract shall be taken to be his normal weekly working hours.

18. Where in a particular week an employee qualifies for a payment of a bonus, pay allowance or commission which relates to more than the work done in that week, the appropriate portion of the payment may be taken into account under paragraphs 13 and 16 (iii).

19. An employee who is normally employed on a shift cycle and whose remuneration varies in relation to the particular shift he works, and an employee whose remuneration for his normal number of working hours varies in relation to the day of the week or the times of the day or night over which those hours are spread, shall be taken to be each an employee who is paid wholly or partly by piece-rates.

20. For the purposes of this Schedule, in the case of an employee who has no normal working hours, his normal weekly remuneration shall be taken to be the average weekly remuneration, including any bonus, pay allowance or commission, received by the employee concerned over the period of 52 weeks during which he was actually working immediately prior to the date on which he was declared redundant.

21. The date on which an employee is declared redundant shall for the purposes of this Schedule be taken to be the date on which a notice of proposed dismissal was given to the employee in accordance with section 17 or, where a redundancy payment is claimed in accordance with section 12, the first day of the series of weeks of lay-off or short-time referred to in section 7 (3).

22. Where under this Schedule account is to be taken of remuneration or other payments for a period which does not coincide with the periods for which the remuneration or other payments are calculated, part of the remuneration or other payments shall be duly apportioned in such manner as may be just.

23. For the purposes of paragraphs 13 and 16, account shall not be taken of any sums paid to an employee by way of recoupment of expenses necessarily incurred by him in the proper discharge of the duties of his employment.

Miscellaneous

24. In this Schedule—

F133 [ ]

strike” and “ lock-out” have the meanings respectively assigned to them by section 6.

Annotations:

Amendments:

F113

Substituted (10.04.2005) by Redundancy Payments Act 2003 (14/2003), s. 11, S.I. No. 77 of 2005.

F114

Inserted (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 17 and sch., S.I. No. 95 of 1979.

F115

Inserted (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 17 and sch., S.I. No. 95 of 1979.

F116

Substituted (10.04.2005) by Redundancy Payments Act 2003 (14/2003), s. 12(a), S.I. No. 77 of 2005.

F117

Inserted by Adoptive Leave Act 1995 (2/1995), s. 28, as substituted (28.11.2005) by Adoptive Leave Act 2005 (25/2005), s. 20, S.I. No. 724 of 2005.

F118

Substituted (10.04. 2005) by Maternity Protection (Amendment) Act 2004 (28/2004), s. 24(a), S.I. No. 131 of 2005.

F119

Inserted (1.08.2016) by Paternity Leave and Benefit Act 2016 (11/2016), s. 32(a), S.I. No. 435 of 2016.

F120

Inserted (1.11.2019) by Parent’s Leave and Benefit Act 2019 (35/2019), s. 33(a), (b), S.I. No. 629 of 2019.

F121

Inserted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971.

F122

Substituted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971.

F123

Inserted (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 17 and sch., S.I. No. 95 of 1979.

F124

Substituted (10.04.2005) by Redundancy Payments Act 2003 (14/2003), s. 12(b), S.I. No. 77 of 2005.

F125

Substituted by Adoptive Leave Act 1995 (2/1995), s. 28, as substituted (28.11.2005) by Adoptive Leave Act 2005 (25/2005), s. 20(b), S.I. No. 724 of 2005.

F126

Substituted (10.04.2005) by Maternity Protection (Amendment) Act 2004 (28/2004), s. 24(b), S.I. No. 131 of 2005.

F127

Inserted (1.08.2016) by Paternity Leave and Benefit Act 2016 (11/2016), s. 32(b)(i), S.I. No. 435 of 2016.

F128

Substituted (1.08.2016) by Paternity Leave and Benefit Act 2016 (11/2016), s. 32(b)(ii), S.I. No. 435 of 2016.

F129

Substituted (1.11.2019) by Parent’s Leave and Benefit Act 2019 (35/2019), s. 33(c), S.I. No. 629 of 2019.

F130

Substituted (10.04.2005) by Redundancy Payments Act 2003 (14/2003), s. 12(c), S.I. No. 77 of 2005.

F131

Inserted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971.

F132

Inserted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971.

F133

Deleted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971.

Modifications (not altering text):

C22

Prospective affecting provision: application of schedule (in part) extended with necessary modifications by Irish Shipping Limited (Payments to Former Employees) Act 1994 (10/1994) s. 2(4), not commenced as of date of revision.

Payment of lump sum to former employees of company

2.—(1) Subject to the subsequent provisions of this Act, the Minister shall, on application to the Minister in that behalf by a former employee or, if the former employee has died whether before or after the passing of this Act, by his or her personal representative, pay to the former employee or the personal representative, as the case may be, out of moneys provided by the Oireachtas, a sum (referred to in this Act as “a lump sum”) calculated in accordance with the provisions of subsection (2) of this section.

...

(4) Schedule 3 (other than paragraphs 1 and 2 thereof) of the Act of 1967 shall apply, with any necessary modifications, in relation to a lump sum as it applies in relation to a lump sum (within the meaning of that Act).

C23

Application of Sch. 3 para. 1 not restricted by Pensions Act 1990 (25/1990), s. 75, as substituted (5.04.2004) by Social Welfare (Miscellaneous Provisions) Act 2004 (9/2004), s. 22, S.I. No. 141 of 2004.

Compliance with statutory requirements, etc.

75. — ...

(4) Nothing in this Part renders unlawful any act done in compliance with paragraph 1 of Schedule 3 to the Redundancy Payments Act 1967 and, accordingly, any such act does not constitute a breach of the principle of equal pension treatment on the age ground.

C24

Power to amend by order vested in Minister (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 4(2), S.I. No. 95 of 1979.

Provisions relating to lump sum under Principal Act, and consequential provisions.

4. — ...

(2) The Minister may by regulations made with the consent of the Minister for Finance—

(a) vary the amount of £5,000 referred to in paragraph 2 of Schedule 3 of the Principal Act (inserted by this section), and

(b) alter the method of calculation of a lump sum under the Principal Act.

Editorial Notes:

E133

Previous affecting provision: power to alter method of calculation of a lump sum vested in Minister (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 4(2)(b), S.I. No. 95 of 1979 in relation to Redundancy Payments Act 1967 (21/1967), s. 19 and sch. 3, para. 2; para. 2 substituted as per F-note above.

E134

Previous affecting provision: para. 5(c) substituted (10.04.2005) by Redundancy Payments Act 2003 (14/2003), s. 12(a), S.I. No. 77 of 2005; substituted as per F-note above.

E135

Previous affecting provision: para. 5(e) inserted (20.03.1995) by Adoptive Leave Act 1995 (2/1995), s. 28, S.I. No. 64 of 1995; s. 28 (the amending provision) was substituted (28.11.2005) by Adoptive Leave Act 2005 (25/2005), s. 20, S.I. No. 724 of 2005 and appears to have replaced the substance of the provision in (e) with the new subpara. (b).

E136

Previous affecting provisions: para. 5(d) inserted (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 17 and sch., S.I. No. 95 of 1979 and first substituted (6.04.1981) by Maternity Protection of Employees Act 1981 (2/1981), s. 28, commenced as per s. 1; substituted for the second time (30.01.1995) by Maternity Protection Act 1994 (34/1994), s. 39, S.I. No. 16 of 1995; substituted for the third time (3.12.1998) by Parental Leave Act 1998 (30/1998), s. 25(1), commenced as per s. 1; substituted for the fourth time (2.07.2001) by Carer’s Leave Act 2001 (19/2001), s. 26, commenced on enactment; and substituted for the fifth time as per F-note above.

E137

Previous affecting provision: para. 2A inserted (1.04.1974) by Redundancy Payments (Weekly Payments and Lump Sum) Order 1974 (S.I. No. 82 of 1974), art. 7; substituted (21.06.1976) by Redundancy Payments (Weekly Payments) Order 1976 (S.I. No. 126 of 1976), art. 5 (and renamed para. 2); substituted as per F-note above.

E138

Previous affecting provision: para. 1 amended (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971; amended for transitional period (25.05.2003) by Redundancy Payments Act 2003 (14/2003), s. 10, S.I. No. 194 of 2003; ceased to have effect (10.04.2005) on the commencement of Redundancy Payments Act 2003 (14/2003), s. 11, S.I. No. 77 of 2005 which substituted para. 1 as per F-note above.

E139

Previous affection provisions: para. 2 deleted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971; re-inserted (6.04.1979) by Redundancy Payments Act 1979 (7/1979), s. 4(1), S.I. No. 95 of 1979; amended (1.06.1981) by Redundancy Payments (Lump Sum) Regulations 1981 (S.I. No. 191 of 1981), reg. 2; amended (1.05.1982) by Redundancy Payments (Lump Sum) Regulations 1982 (S.I. No. 104 of 1982), reg. 3; amended (1.05.1983) by Redundancy Payments (Lump Sum) Regulations 1983 (S.I. No. 108 of 1983), reg. 3; amended (1.02.1990) by Redundancy Payments (Lump Sum) Regulations 1990 (S.I. No. 18 of 1990), reg. 3; amended (1.05.1994) by Redundancy Payments (Lump Sum) Regulations 1994 (S.I. No. 64 of 1994), reg. 3; amended (1.04.2001) by Redundancy Payments (Lump Sum) Regulations 2001 (S.I. No. 41 of 2001), reg. 2; amended (1.01.2005) by Redundancy Payments (Lump Sum) Regulations 2004 (S.I. No. 695 of 2004), reg. 2; substituted as per F-note above.

E140

Previous affecting provisions: para. 5 amended and para. 5(1)(ai) inserted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 19(1) and sch., S.I. No. 230 of 1971; substituted as per F-note above.