Redundancy

dos30

My mother is working for a state funded childcare company for the last 10 years,.

She initially started the company with a partner as a private company but then changed it to be state owned to get funding or something like that.

Anyway the government are cutting funding and it is being closed down.

My question is how does redundancy work for state employees? I have read that the minimum is:

Two weeks' statutory redundancy payment for every year of service, regardless of age, and
One further week's pay

Is this what she will get, end of story, or is it normally negotiated?

dak

dos30 wrote: »

My mother is working for a state funded childcare company for the last 10 years,.

She initially started the company with a partner as a private company but then changed it to be state owned to get funding or something like that.

Anyway the government are cutting funding and it is being closed down.

My question is how does redundancy work for state employees? I have read that the minimum is:

Two weeks' statutory redundancy payment for every year of service, regardless of age, and
One further week's pay

Is this what she will get, end of story, or is it normally negotiated?

Statutory redundancy is as you have heard provided there are no breaks in service. The maximum payable per week of reckonable service is capped at €600 . I suggest you use the redundancy calculator on this link for further information

http://www.entemp.ie/employment/redundancy/calculator.htm .

In Private companies ( not sure about state ones) you often get non-statutory redundancy. This is tax free lump sum up to a limit of around €20,000 provided the person has never received a lump sum redundancy previously in their life time.

dos30

Thanks Dax that calculator is very handy.

Her partner in the company told her she would pay my mothers redundancy out of the remaining funds in the company and she would wait for State Redundancy.

Just wondering if she's trying to pull a fast one?

dak

dos30 wrote: »

Thanks Dax that calculator is very handy.

Her partner in the company told her she would pay my mothers redundancy out of the remaining funds in the company and she would wait for State Redundancy.

Just wondering if she's trying to pull a fast one?

As far as I am aware the statutory redundancy is for PAYE employees. By the sound of it your mother may be a director/ partner in the company ? Depending on the legal status of the company , the nature of the wind upetc ,there are rules for distributing remaining funds ie preferential creditors etc .

Best to seek legal advise I would say!