Employers are legally obliged to make payments on a scale set down by statute to all employees leaving employment by reason of being made redundant. Redundancy involves being dismissed by an employer with or without notice when the employee has not been guilty of any breach of the contract of employment – whether that be express or implied – and has not been offered reasonable alternative employment by the same employer. Constructive dismissal will be inferred where the employer acts in a manner which precludes continuation of employment. The sum payable on redundancy will vary with the length of time that the person has been employed, starting from between one and one-and-a-half weeks’ pay for each year of continuous employment, depending on the age of the recipient. A large part of this sum can be reclaimed by the employer from the State.
Reference: The Penguin Business Dictionary , 3rd edt.