Guide
Payment in lieu of notice in Ireland: how it works
Updated
Pay in lieu, or payment in lieu of notice, is not a discount on the notice period. It is the same money, paid without the work.
Talk to a specialist Your service band, the notice it earns, and what that is worth in pay.
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How this calculator works
- The service bands are taken from section 4(2) of the Minimum Notice and Terms of Employment Act 1973 (Irish Statute Book). The Workplace Relations Commission and Citizens Information both publish the same table.
- Less than two years, one week; two years or more but less than five, two weeks; five or more but less than ten, four weeks. Ten or more but less than fifteen, six weeks; fifteen years or more, eight weeks.
- Section 4(1) applies the obligation only to an employee in continuous service for thirteen weeks or more. That is why the calculator returns zero below 0.25 of a year (Workplace Relations Commission).
- An employee's own obligation does not scale with service. The Workplace Relations Commission says employees in continuous employment for at least 13 weeks must give their employer one week's notice. A greater amount specified in the contract must be given instead.
- A contract can improve on the statute but not reduce it. Under section 4(5), a contract term giving less than the statutory period takes effect as if it gave notice in accordance with the section. So the calculator always takes the greater of the two.
- Continuous service is assumed. Citizens Information says service is continuous unless you are dismissed or resign. It is not normally affected by strikes, lay-offs, dismissal followed by immediate re-employment, or a transfer of undertakings.
- Notice pay uses normal pay. Citizens Information states that during the period of notice you should receive your normal pay, and that this also applies where you are paid in lieu of notice.
- This calculates statutory minimum notice only. It is not redundancy pay, not pay in lieu of untaken annual leave, and not compensation for unfair dismissal. It also does not apply where an employer dismisses for gross misconduct, or where either party terminates without notice due to the other's misconduct.
Payment in lieu: the same pay, without working
Citizens Information says pay in lieu of notice means you do not work between receiving notice and the end of your employment. You still get the wages you would have received had you worked. During notice you should receive your normal pay, and that also applies if you are paid in lieu (Citizens Information).
The right sits in section 7 of the Minimum Notice and Terms of Employment Act 1973, cited by both Citizens Information and the Workplace Relations Commission. The Commission adds that where the employer does not require any part of the notice to be worked, it must pay for that period.
While you are on notice or paid in lieu
- Citizens Information states that during this time you are considered to be unemployed and available for work, and that you can claim a jobseeker's payment.
- It also states that you cannot claim a jobseeker's payment for any day on which you are receiving holiday pay.
- If the payment is compensation for loss of employment it may qualify for tax relief; if it is provided for in your contract, normal tax and PRSI rules apply. Citizens Information sets out both cases, and the treatment turns on which one you are in.
Redundancy notice period in Ireland: the same bands
Citizens Information's redundancy notice page publishes the same table (Citizens Information: redundancy notice periods):
- 13 weeks to 2 years gives 1 week;
- 2 to 5 years gives 2 weeks;
- 5 to 10 years gives 4 weeks;
- 10 to 15 years gives 6 weeks;
- over 15 years gives 8 weeks.
Its worked example matches too: five years and three months produces four weeks.
Three things differ in a redundancy, and they matter.
- The notice must be in writing
- Citizens Information states that the employer should give notice of redundancy in writing, and that it must give the date of termination. The notice period only starts when that notice and finishing date are given, not when you are told you are at risk.
- Paid time off to look for work
- Citizens Information states that you are entitled by law to paid time off during your last 2 weeks of notice to look for a new job, and that your employer can ask for proof you are using it for that.
- Leaving early can cost you the payment
- Citizens Information states that to leave before the notice period ends you must complete form RP6 and give it to your employer, that the employer decides whether to allow it, and that leaving without agreement may affect your entitlement to a redundancy payment.
If notice or notice pay is wrong
The Workplace Relations Commission says an employee who considers their employer has contravened the Acts may complain to the WRC. With both parties' agreement a complaint may go to a Mediation Officer, or to an Adjudication Officer for hearing. Decisions may be appealed to the Labour Court.
Statutory notice is separate from statutory redundancy pay and from any unfair dismissal claim. Getting the right notice does not settle those, and settling those does not remove the notice entitlement.