Redundancy Payments Act 1967

Number 21 of 1967

REDUNDANCY PAYMENTS ACT 1967

REVISED

Updated to 3 July 2023

This Revised Act is an administrative consolidation of the Redundancy Payments Act 1967. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.

All Acts up to and including the Civil Defence Act 2023 (17/2023), enacted 26 June 2023, and all statutory instruments up to and including the Work Life Balance and Miscellaneous Provisions Act 2023 (Commencement) Order 2023 (S.I. No. 341 of 2023), made 29 June 2023, were considered in the preparation of this Revised Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to

revisedacts@lawreform.ie.

Number 21 of 1967

REDUNDANCY PAYMENTS ACT 1967

REVISED

Updated to 3 July 2023

ARRANGEMENT OF SECTIONS

PART I

Preliminary and General

	Short title.	Interpretation.	Commencement.	Classes of persons to which this Act applies.	Laying of regulations and certain draft orders before Houses of Oireachtas.	Section
1.	Short Title.
2.	Interpretation.
3.	Commencement.
4.	Classes of persons to which this Act applies.
5.	Laying of regulations and certain draft orders before Houses of Oireachtas.

PART II

Redundancy Payment

6.	Definition for Part II.
7.	General right to redundancy payment.
8.	Qualification of general right under section 7.
9.	Dismissal by employer.
10.	Employee anticipating expiry of employer’s notice.
11.	Lay-off and short-time.
12.	Right to redundancy payment by reason of lay-off or short-time.
12A.	Operation of section 12 - emergency period.
13.	Right of employer to give counter-notice.
14.	Disentitlement to redundancy payment because of dismissal for misconduct.
15.	Disentitlement to redundancy payment for refusal to accept alternative employment.
16.	Associated companies.
17.	Notice of proposed dismissal for redundancy.
18.	Redundancy certificate.
19.	Payment of lump sum by employer.
20.	Change of ownership of business.
21.	Implied or constructive termination of contract.
22.	Application of this Part upon employer’s or employee’s death.
23.	Modification of right to redundancy payment where previous redundancy payment has been paid.
24.	Time-limit on claims for redundancy payment.
25.	Employment wholly or partly abroad.

PART III

Redundancy Fund

26.	Establishment of the Redundancy Fund. (Repealed)
27.	Financing of Redundancy Fund.
28.	Amount of weekly contribution to Redundancy Fund. (Repealed)
29.	Rebates to employers from the Redundancy Fund.
30.	Weekly payments to employees from Redundancy Fund.
31.	Regulations as to entitlement to weekly payment and to allowance under Industrial Training Act, 1967.
32.	Other payments to employees from Redundancy Fund.
32A.	Covid-19 related lay-off payment.
33.	Regulations as to payment of contributions. (Repealed)
34.	Preparation and issue of redundancy stamps, etc. (Repealed)
35.	Persons employed by more than one employer, etc.
36.	Regulations for Part III.

PART IV

Miscellaneous Provisions

37.	Deciding officers.
38.	Decisions by deciding officers.
39.	Redundancy Appeals Tribunal and appeals and references thereto.
39A.	Appeal to Labour Court from decision of adjudication officer.
40.	Appeal to High Court on point of law.
41.	Revision of decisions.
42.	Provisions relating to winding up and bankruptcy.
43.	Recovery of sums due to Redundancy Fund.
44.	Application of section 52 of the Act of 1952.
45.	Application of Section 53 of Act of 1952.
46.	Aid to unemployed persons changing residence.
47.	Special redundancy schemes for employees excluded from Act.
48.	Provision for officers and servants on Córas Iompair Éireann and Óstlanna Iompair Éireann Teoranta.
49.	Power to modify or wind-up existing schemes and arrangements for the provision of superannuation and redundancy payments.
50.	Application of Probation of Offenders Act, 1907. (Repealed)
51.	Voidance of purported exclusion of provisions of this Act.
52.	Offences by bodies corporate.
53.	Provisions regarding notices.
54.	Certificate of decision by deciding officer.
55.	Power to remove difficulties.
56.	Expenses of Minister.
57.	Regulations regarding keeping of records, furnishing of information and inspection of records.
58.	Regulations providing for offences.

SCHEDULE 1

SCHEDULE 2

SCHEDULE 3

Acts Referred to
Social Welfare Act, 1952	1952, No. 11
Companies Act, 1963	1963, No. 33
Industrial Training Act, 1967	1967, No. 5
Deeds of Arrangement Act, 1887	1887, c. 57
Succession Act, 1965	1965, No. 27
Public Offices Fees Act, 1879	1879, c. 58
Inland Revenue Regulations Act, 1890	1890, c. 21
Stamp Duties Management Act, 1891	1891, c. 38
Stamp Act, 1891	1891, c. 39
Post Office Act, 1908	1908, c. 48
Preferential Payments in Bankruptcy (Ireland) Act, 1889	1889, c. 60
Bankruptcy (Ireland) Amendment Act, 1872	1872, c. 58
Transport Act, 1964	1964, No. 30
Probation of Offenders Act, 1907	1907, c. 17
Social Welfare (Occupational Injuries) Act, 1966	1966, No. 16

Number 21 of 1967

REDUNDANCY PAYMENTS ACT 1967

REVISED

Updated to 3 July 2023

AN ACT TO PROVIDE FOR THE MAKING BY EMPLOYERS OF PAYMENTS TO EMPLOYEES IN RESPECT OF REDUNDANCY, TO ESTABLISH A REDUNDANCY FUND AND TO REQUIRE EMPLOYERS AND EMPLOYEES TO PAY CONTRIBUTIONS TOWARDS THAT FUND, TO PROVIDE FOR PAYMENTS TO BE MADE OUT OF THAT FUND TO EMPLOYERS AND EMPLOYEES, TO PROVIDE FINANCIAL ASSISTANCE TO CERTAIN UNEMPLOYED PERSONS CHANGING RESIDENCE, AND TO PROVIDE FOR OTHER MATTERS (INCLUDING OFFENCES) CONNECTED WITH THE MATTERS AFORESAID. [18th December, 1967.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

Annotations

Modifications (not altering text):

Prospective affecting provision: functions transferred and Employment Appeals Tribunal construed by Workplace Relations Act 2015 (16/2015), s. 66, not commenced as of date of revision.

Transfer of functions from Employment Appeals Tribunal

66.(1) (a) All functions that, immediately before the dissolution day, were vested in the Employment Appeals Tribunal are transferred to the Commission in so far as they relate to any claim for redress, dispute or complaint determined by the Employment Appeals Tribunal under an employment enactment before that day.

(b) All functions that, immediately before the dissolution day, were vested in the Employment Appeals Tribunal are transferred to the Labour Court in so far as they relate to appeals determined by the Employment Appeals Tribunal under an employment enactment before that day.

(2) (a) References in any enactment or instrument under an enactment to the Employment Appeals Tribunal in so far as they relate to a function transferred by paragraph (a) of subsection (1) shall be construed as references to the Commission.

(b) References in any enactment or instrument under an enactment to the Employment Appeals Tribunal in so far as they relate to a function transferred by paragraph (b) of subsection (1) shall be construed as references to the Labour Court.

(3) This section shall come into operation on the dissolution day.

Functions transferred and references construed (14.10.2020) by Employment Affairs and Employment Law (Transfer of Departmental Administration and Ministerial Functions) Order 2020 (S.I. No. 438 of 2020), arts. 2, 3(1)(a), (2) and sch., in effect as per art. 1(2), subject to transitional provisions in arts. 4-8.

2. (1) The administration and business in connection with the exercise, performance or execution of any functions transferred by Article 3 are transferred to the Department of Business, Enterprise and Innovation.

(2) References to the Department of Employment Affairs and Social Protection contained in any Act or any instrument made under such Act and relating to any administration and business transferred by paragraph (1) shall, on and after the commencement of this Order, be construed as references to the Department of Business, Enterprise and Innovation.

3. (1) The functions vested in the Minister for Employment Affairs and Social Protection -

(a) by or under the Acts specified in Part 1 of the Schedule and the provisions of the Acts specified in Part 2 of the Schedule, and

...

are transferred to the Minister for Business, Enterprise and Innovation.

...

(2) References to the Minister for Employment Affairs and Social Protection contained in any Act or instrument made under such Act and relating to any functions transferred by this Article shall, on and after the commencement of this Order, be construed as references to the Minister for Business, Enterprise and Innovation.

SCHEDULE

PART 2

PROVISIONS OF ACTS OF THE OIREACHTAS

Redundancy Payments Act 1967 (No. 21 of 1967)

...

Application of collectively cited Redundancy Payments Acts 1967 to 1990 (“relevant enactment” as per s. 3) extended (20.12.2001) by Protection of Employees (Part-Time Work) Act 2001 (45/2001), s. 8, S.I. No. 636 of 2001.

Application of relevant enactments.

8.— Each relevant enactment shall apply to a part-time employee in the same manner, and subject to the like exceptions not inconsistent with this section, as it applies, other than by virtue of this Act, to an employee to whom that enactment relates.

Application of collectively cited Redundancy Payments Acts 1967 to 1991 not restricted (1.04.2000) by National Minimum Wage Act 2000 (5/2000), s. 41(12), S.I. No. 96 of 2000.

Employer in financial difficulty

41. — ...

(12) For the purposes of calculating an employee’s entitlement to a redundancy payment under the Redundancy Payments Acts, 1967 to 1991, any exemption under this section shall be ignored and the calculation made as if the employee had been paid the national minimum hourly rate of pay to which he or she was otherwise entitled under this Act, for the period of the exemption.

Application of collectively cited Redundancy Payments Acts 1967 to 1990 extended (1.05.1997) by Labour Services Act Apprenticeship Rules 1997 (S.I. No. 168 of 1997), rl. 7(1).

Dismissal

7. (1) Subject to 7 (2), no employer shall dismiss any apprentice save in strict accordance with the provision of the Unfair Dismissals Acts 1977 and 1993, the Protection of Employment Act 1977, the Minimum Notice and Terms of Employment Act 1973, and the Redundancy Payments Acts 1967 to 1990.

Term “Redundancy Appeals Tribunal” construed (9.05.1977) by Unfair Dismissals Act 1977 (10/1977), s. 18, S.I. No. 138 of 1977.

Employment Appeals Tribunal.

18.—The tribunal established by section 39 of the Redundancy Payments Act, 1967, shall be known as the Employment Appeals Tribunal and references in that Act and any other Act of the Oireachtas and any instrument made under any Act of the Oireachtas to the Redundancy Appeals Tribunal shall be construed as references to the Employment Appeals Tribunal.

Application of Act extended (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 2, S.I. No. 230 of 1971.

Extension of application of certain provisions of Acts.

2. — In relation to an employee whose employment is terminated by reason of redundancy on or after the commencement of this Act, any provision of the Principal Act or this Act which affects or relates to the preservation of continuity of the employee‘s employment shall apply to periods of employment before the 1st day of January, 1968, as they apply to such periods after that date.

Application of Act extended (1.10.1971) by Redundancy Payments Act 1971 (20/1971), s. 8, S.I. No. 230 of 1971.

Redundancy payment to certain employees dismissed before commencement of Act.

8.— (1) Where an employee who was dismissed before the commencement of this Act was not entitled to redundancy payment under the Principal Act in respect of the dismissal solely because the requirements of the business carried on by his employer for employees to carry out work of a particular kind, or to carry out such work in the place where the employee had been so employed, had not ceased or diminished or were not expected to cease or diminish, the Minister may, at his discretion and notwithstanding the Principal Act, pay to that employee out of the Redundancy Fund a sum equal in amount to the sum to which he would have been entitled under the Principal Act if the said requirements had ceased or diminished or were expected to cease or diminish.

(2) In relation to the amendments of the Principal Act referred to in section 19 (2), the Minister may, in respect of a dismissal or a termination of employment in the period beginning on the 22nd day of January, 1971 and ending on the commencement of this section and notwithstanding the Principal Act, pay to an employee out of the Redundancy Fund any moneys to which the employee may become entitled by virtue of the said section 19 (2).

Power to adapt and modify Act vested in Minister (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 17, S.I. No. 230 of 1971; references to “Minister” construed as references to “Minister for Social Protection” (1.01.2011) by Redundancy and Insolvency Payments (Transfer of Departmental Administration and Ministerial Functions) Order 2010 (S.I. No. 189 of 2010), art. 3(2), in effect as per reg. 1(2).

Reciprocal arrangements

17.—(1) The Minister may make such orders as may be necessary to carry out any reciprocal or other arrangements, made with the proper authority under any other Government, in respect of matters relating to redundancy payments, and may by any such order make such adaptations of and modifications in the Principal Act as he considers necessary.

(2) The Minister may by order amend or revoke an order under this section.

Editorial Notes:

For purposes of collectively cited Redundancy Payments Acts 1967 to 1914 an employee not permitted to return to work to whom the Parent’s Leave and Benefit Act 2019 applies shall be deemed to have been dismissed by reason of redundancy, the date of dismissal being deemed to be the date of expected return, as provided (1.11.2019) by Parent’s Leave and Benefit Act 2019 (35/2019), s. 22(2), S.I. No. 629 of 2019.

Date of redundancy in respect of employees to whom collectively cited Redundancy Payments Acts 1967 to 2014 applies prescribed (1.08.2016) by Paternity Leave and Benefit Act 2016 (11/2016), s. 26(2), S.I. No. 435 of 2016.

Collectively cited Redundancy Payments Acts 1967 to 2014 included in definitions of “employment enactment” and “relevant enactment” (1.08.2015) by Workplace Relations Act 2015 (16/2015), s. 2 and sch. 1 part 1 item 18, S.I. No. 338 of 2015, with the following effects:

• Authorised officers or inspectors under employment enactments deemed to be appointed under Workplace Relations Act 2015 (16/2015), s. 26(2) and subject to termination under s. 26(4).

• Powers of inspectors for purposes of relevant enactments defined in Workplace Relations Act 2015 (16/2015), s. 27.

• Workplace Relations Commission, an inspector or an adjudication officer authorised to disclose employer’s registered number or employee’s PPSN to enable Labour Court to perform functions under relevant enactments by Workplace Relations Act 2015 (16/2015) s. 31(5).

• Power of Workplace Relations Commission and official body to disclose information to each other concerning the commission of offence under relevant enactment provided by Workplace Relations Act 2015 (16/2015), s. 32.

• Power of Workplace Relations Commission and contracting authority to disclose information to each other concerning the commission of offence under employment enactment/ relevant enactment provided by Workplace Relations Act 2015 (16/2015), s. 33.

• Powers of Minister to prosecute under relevant enactments transferred to Workplace Relations Commission and references construed by Workplace Relations Act 2015 (16/2015), s. 37.

• Functions of EAT to hear claims under employment enactments transferred to Workplace Relations Commission and references to EAT construed by Workplace Relations Act 2015 (16/2015) s. 66(1), (2), not commenced as of date of revision.

Employee deemed to be dismissed by reason of redundancy in certain circumstances and date of redundancy prescribed (3.12.1998) by Parental Leave Act 1998 (30/1998), s. 25(3)(b), commenced as per s. 1(2).

Employee deemed to be dismissed by reason of redundancy in certain circumstances and date of redundancy prescribed (20.03.1995) by Adoptive Leave Act 1995 (2/1995), s. 29, S.I. No. 64 of 1995.

Employee deemed to be dismissed by reason of redundancy in certain circumstances and date of redundancy prescribed (30.01.1995) by Maternity Protection Act 1994 (34/1994), s. 40(2), S.I. No. 16 of 1995.

Previous affecting provision: application of collectively cited Redundancy Payments Acts 1967 to 1990 ("relevant enactment" as per s. 1) extended (17.06.1991) by Worker Protection (Regular Part-Time Employees) Act 1991 (5/1991), s. 3, S.I. No. 144 of 1991; repealed (20.12.2001) by Protection of Employees (Part-Time Work) Act 2001 (45/2001), s. 5, S.I. No. 636 of 2001.

Previous affecting provision: references to “Redundancy Fund” construed (30.11.1984) by Protection of Employees (Employers’ Insolvency) Act 1984 (21/1984), s. 2, commenced on enactment; repealed (6.04.1991) by Social Welfare Act 1991 (7/1991), s. 39(2), commenced as per subs. (3).

Previous affecting provision: application of Act restricted (1.09.1971) by Redundancy Payments Act 1971 (20/1971), s. 3, S.I. No. 230 of 1971; repealed (8.05.2007) by Protection of Employment (Exceptional Collective Redundancies and Related Matters) Act 2007 (27/2007), s. 20, commenced on enactment.

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Redundancy Payments Act 1967