Redundancy with Pensions
Where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff this is known as redundancy.
The redundancy payments acts 1967 – 2014 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer. Not all employees are entitled to the statutory redundancy payment, even where a redundancy situation exists. If you do qualify for redundancy there are specific redundancy procedures which employers and employees must follow in order to comply with the legislation.
Employer Discretionary Payments (Top – ups)
You and your employer may agree to a redundancy payment above the statutory minimum, and in such circumstances, employees who have not reached the statutory minimum period of service may also receive a payment. For example, statutory redundancy only applies to employees with two years’ service. This Employer payment arises through agreement and not through a statutory entitlement. As so often in employment law, the legislation is concerned with ensuring minimum rights, while allowing the parties to agree more substantial rights.
What’s Your Status?
You can contribute to various types of pensions depending on your employment status.