Redundancy Rate of Pay

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Anon Amos

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Hi all. I am being made redundant at the end of this year and I am finding it hard to get information on a couple of things.

(1) I have my basic rate of pay and also a higher rate of pay when I cover for my manager. It’s at least 5 weeks a year on the higher rate and often more with sickness/other. Does this come into account in my redundancy calculation?

(2) If yes, will I still be capped on my normal rate of pay or will the new rate of pay above be applied on the cap also?

The only thing I can find similar is expected overtime but there’s nothing about a cap in that.
I would be grateful if anyone could shed some light on this. Thanks.
 
All of this will depend on the redundancy policy that is in place in your company.

Companies have no legal requirement to pay more then statutory and the salary calculations for that are capped at 600 per week.
 
thedaddyman said:
All of this will depend on the redundancy policy that is in place in your company.

Companies have no legal requirement to pay more then statutory and the salary calculations for that are capped at 600 per week.
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Yes, I am well aware of all that. I am just wondering more on a “standard practice” premise or if anyone has been in a similar situation.
 
In my experience, companies exclude things like car allowances and travel allowances when calculating the base pay for redundancy but would include overtime earnings and therefore possibly acting up pay as well. I've seen companies take an average weekly salary based on a couple of years but it will vary from company to company
 
I have seen companies include car allowances where not everyone gets it eg one place the older employees had a separate line item car allowance and newer employees just had it baked into salary. That same place gave a fixed lump sum plus years of service so newer employees got more pro rata than older ones. Another place it was just a straight x weeks per year of service on base salary, excluding commission and bonus. TBH it varies so much there is no real standard. Is this a collective redundancy, or unionised workplace, is there any room for negotiation on it or are you just trying to estimate your payout?

Your tax allowances however would take all salary and BIK items into consideration so make sure you are fully up to speed with that.
 
Anon Amos said:
Hi all. I am being made redundant at the end of this year and I am finding it hard to get information on a couple of things.

(1) I have my basic rate of pay and also a higher rate of pay when I cover for my manager. It’s at least 5 weeks a year on the higher rate and often more with sickness/other. Does this come into account in my redundancy calculation?

(2) If yes, will I still be capped on my normal rate of pay or will the new rate of pay above be applied on the cap also?

The only thing I can find similar is expected overtime but there’s nothing about a cap in that.
I would be grateful if anyone could shed some light on this. Thanks.
Click to expand...
I assume you’re talking about pay for the purposes of calculating your statutory redundancy.

Where pay rates are inconsistent for reasons such as those you mentioned, an average over the previous 52 weeks can be applied. It can include overtime, BIK etc.

An explanation is available on the citizens information website

How much redundancy pay will I get?

Find out about redundancy pay and how your statutory redundancy is calculated.
www.citizensinformation.ie www.citizensinformation.ie

It’s common for employers to pay more than the statutory entitlement but whether they do is determined by their ability and willingness to do so.
 
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