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Redundancy payment calculation

  • 19-02-2018 10:14am
    #1
    Registered Users, Registered Users 2 Posts: 202 ✭✭


    Hi,
    I will be made redundant soon and have a query about the calculation of the redundancy payment. 
    For several years I have been seconded from my (Irish) parent company to an international branch. While there my salary was based on a multiplier of my Irish salary and grossed up to cover tax liabilities. Basically the effective gross salary was approximately double my Irish salary.
    However in calculating my redundancy payment (statutory and discretionary) the company insists that my original Irish salary is the reference.
    Can you please advise whether this is allowed or whether I can object. They have started that any payment above the statutory is discretionary, suggesting that I wouldn't have a leg to stand on to challenge this.
    Any advice would be much appreciated.

    Note: for the statutory payment calculation, my base Irish salary is above the 600/wk limit so I understand that use of the international salary would not change the result of the calculation.


Comments

  • Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Basically, they're right. Anything above the statutory is at their discretion.

    However, there are a lot of processes they must follow, especially if a lot of people are being made redundant. In that case, the calculation of payments must be fair across the board (i.e. one person cannot receive a special lump sum while everyone else gets minimum), and the employer must consult with a representative group before finalising the redundancy arrangement.

    http://www.citizensinformation.ie/en/employment/unemployment_and_redundancy/redundancy/


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