No redundancy because you got a P45 instead?

Wile E. Coyote

I’m not too familiar with redundancies (thank god) so thought I would throw it out here and hope some of the wise members of Boards might be able to help me.

My mother has worked in a small village hotel for the best part of 10years if not more. A few weeks ago the hotel owner closed up one day putting all the staff out a job. I asked my mother did herself and the rest of the staff receive a redundancy package but apparently they were told that because they were issued with P45’s they had broken their service and weren’t entitled to redundancy. I should add that she still hasn’t received her P45 or final pay cheque.

Surely this can’t be right and is just a way of the hotel owner trying to get around paying the money due to the staff. If this is the case, then whats to stop any company closing their doors, and issuing P45’s instead of redundancies?

Can anyone advise what the situation and rights are in a case like this?

Freddie59

That is completely outrageous. Have a look HERE. You'll find all you need to know. Tell her to go to the Citizen's Advice Centre IMMEDIATELY. FFS.:mad:

Einstein

P45 is a legal document that you receive either from Revenue or your previous employer. The hotel owner sounds as if he's doing people a favour by giving it to them??

I'd be very surprised if she's not entitled to some form of redundancy tbh.

seamus

What the employer says about the P45 is complete nonsense.

You receive a P45 whenever your employment is terminated, whatever the reason for termination. People made redundant also receive a P45. It's a just a document which states how much you have been paid in employment so far this year. It has nothing to do with how or why you stopped being employed.

Yes your mother is entitled to redundancy, however if the hotel has folded, she may difficulty getting anything.

Go here: http://www.flac.ie/

ixoy

I got a P45 when I left my last job. I wasn't fired. I got one when I took up voluntary redundancy before a well. I got it because it's a legal requirement when you leave employment with an employer. Its purpose is to provide a tax record of your employment.

As to severance pay - you're entitled to two weeks statutory minimum per year of service unless you've been fired for a set reason (which does not include the employer not wanting your service). There may be difficulty claiming it but there's still an onus on the employer to provide it.

dudara

The P45 matter is irrespective. She was made redundant - therefore she is at least legally entitled to the minimum statutatory redundancy, as follows from Citizen's Information

The statutory redundancy payment is a lump-sum payment based on the pay of the employee. All eligible employees are entitled to:

* Two weeks' pay for every year of service over the age of 16 and
* One further week's pay

The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week (€31,200 per year).

The employer has to pay the redundancy. However, if the employer cannot pay the redundancy, you can claim for it from the Social Insurance Fund.

On the date of the termination of employment your employer must pay the redundancy lump sum due to you and give you a "Redundancy Certificate" - section B of form RP50.

If your employer has not paid your redundancy lump sum, you should apply to your employer for it using form RP77 (pdf). If your employer still refuses to pay it, you can apply to the Department of Enterprise, Trade and Innovation for direct payment from the Social Insurance Fund using form RP50 (pdf) as follows:

* If your employer is unable to pay your redundancy lump sum, he should sign the RP50 and submit a letter from an accountant or solicitor stating he is unable to pay and accepting liability for the 40% owing to the Social Insurance Fund together with documentary evidence such as audited accounts
* If your employer refuses to pay your redundancy lump sum or if there is a dispute about redundancy you can bring a claim to the Employment Appeals Tribunal using the application form TI-A. This must be done within one year of your dismissal. To apply for your lump sum you should send a completed form RP50 together with a favourable decision from the Employment Appeals Tribunal