Complainant

Respondent

Anonymised Parties

A Complainant

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Act

Complaint/Dispute Reference No.

Date of Receipt

Complaint seeking adjudication by the Workplace Relations Commission under Section 39 of the Redundancy Payments Act, 1967

CA-00060510-001

13/12/2023

The Complainant lodged a claim under the Redundancy Payments Act on the 13th of December 2023. 

She also lodged additional claims under the Payment of Wages Act and the Sick Leave Act 2022 on 5th of February 2023.   These claims are dealt with under a separate ADJ reference. All claims were heard together on 11th of March 2024.

The complainant submits that she was employed by the respondent from 1st of March 2020 and that she was notified in November 2023 that the respondent was ceasing trading and had engaged with a liquidator.   A further communication at end of November from the respondent indicated that the respondent was trying to avoid liquidation but that it was not expected to reopen in the immediate future.

On 3rd December 2023 the complainant provided the named respondent with a completed Part B of form RP9 to claim redundancy payment as she had been laid off in excess of 4 consecutive weeks.    The complainant has not received any reply to this communication.

There was no Appearance by or on behalf of the Respondent at the Adjudication hearing.   

Under the Redundancy Payments Acts, an eligible employee who is found to be redundant is entitled to a statutory redundancy payment for every year of service (per Section 7 of the Redundancy Payment Act of 1967). The Acts provide for a payment of two weeks gross pay for each year of service. A further bonus week is added to this.

An eligible employee is one with 104 weeks of continuous employment with an employer and whose position has ceased to exist. The calculation of Gross weekly pay is subject to a ceiling of €600.00. Gross pay is the current normal weekly pay including average regular overtime and benefits-in-kind and before tax and PRSI deductions. A Redundancy payment is generally tax free.

A complainant must be able to show a minimum two years (104 weeks) of service in the employment.

Responsibility to pay Statutory Redundancy rests with the Employer. Where an employer can prove to the satisfaction of the Department of Employment Affairs and Social Protection that it is unable to pay Statutory Redundancy to an eligible applicant, the Department will make payments directly to that employee and may seek to recover as against the Employer independently. Such claims must be submitted on form RP50 which may be signed by both employer and employee (to be accompanied with a Statement of Affairs).   In the event that an Employer refuses to engage with an employee in this way, it is open to the employee to bring an appropriate complaint before the Workplace Relations Commission.

The Employee must have made a claim for a redundancy payment by notice and in writing before the expiration of 52 weeks from the date of the cessation of the employment per section 24 of the Redundancy Payments Act 1967 (as amended). The time limit may be extended to 104 weeks where the employee can demonstrate to the satisfaction of the Adjudication Officer that the failure to bring the claim in the earlier time period was due to reasonable cause (24(2A)).

The complainant advised the hearing that she had on 26th October 2023 received written communication that her employer, the named respondent , was ceasing to trade with immediate effect. At this time, she was informed that she would be receiving a redundancy payment. On 3rd November 2023 a subsequent letter was received reiterating that the named respondent has ceased trading and has engaged with a liquidator. The letter also stated that final payslips would be issued and a ‘termination payment’ would be made. Staff were advised to “look for alternative work”.

On 30th November a further letter was received stating that the named respondent is trying to “avoid liquidation”, but that it was not expected to reopen in the immediate future.

The complainant stated that she is owed outstanding partial salary from October 2023, reimbursement for 24 accrued holiday days and redundancy payment of at minimum statutory entitlement.

The complainant went on to state that she had on 3rd December 2023 provided the named respondent with a completed Part B of form RP9 to claim redundancy payment as per Redundancy Payments Acts 1967 – 2007, given that she had been laid off in excess of 4 consecutive weeks.

 The completed RP9 form and covering letter was emailed to 7 members of the Board of the named respondent and the Chair, Mr. LO.

The complainant advised the hearing that a physical copy of the letter was also posted to the named respondent premises, but no redundancy process has been communicated by the organisation and no clarity on future employment has been provided.

The complainant further stated that she advised the board of the named respondent that if no reply was received to this communication she would proceed with a formal complaint to WRC.  The complainant confirmed to the hearing that she had not received any reply to this communication.

I conclude that the complainant was dismissed by way of redundancy following a period of lay-off and I am satisfied that the date of that redundancy is the date of the RP9 form submitted by the complainant on 3rd of December 2023

Section 39 of the Redundancy Payments Acts 1967 – 2012 requires that I make a decision in relation to the complaint in accordance with the relevant redress provisions under that Act. I find that the complaint succeeds and award the complainant a redundancy lump sum based on the following:

Start date:                                                        1st of March 2020

Termination date (when RP9 served):         3 December 2023

Weekly gross pay:                                            €687.50   (€2,750 monthly)

These awards are made subject to the complainant having been in insurable employment under the Social Welfare Acts during the relevant period.