Pay in lieu of notice in Ireland: how it works

The same pay, without working

Citizens Information states that pay in lieu of notice means you will not have to work for the period between receiving notice and the end of your employment, and that you still get the same amount of wages you would have received had you worked. It adds that during your period of notice you should receive your normal pay, and that this also applies if you are paid in lieu of notice (Citizens Information).

The right sits in section 7 of the Minimum Notice and Terms of Employment Act 1973, which both Citizens Information and the Workplace Relations Commission cite. The Workplace Relations Commission adds that where the employer does not require the employee to work out any part of the notice, the employer is obliged to 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 runs on the same bands

Citizens Information's redundancy notice page publishes the same table: 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, and over 15 years gives 8 weeks, with the same worked example of five years and three months producing four weeks (Citizens Information: redundancy notice periods).

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 states that an employee who considers their employer has contravened the Acts may present a complaint to the WRC, that complaints may be referred to a Mediation Officer with both parties' agreement or to an Adjudication Officer for hearing, and that 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.