Special redundancy payment of up to €2,268 for those laid off due to Covid

A new redundancy payment scheme for workers laid off because of Covid-19 health restrictions has opened for applications.

The Redundancy Payments (Amendment) Act 2022 will allow workers who were made redundant due to public-health restrictions between March 13th, 2020, and January 31st, 2022, to apply for the payment, which will be up to €2,268 tax-free.

Tánaiste Leo Varadkar said the scheme means that workers made redundant "to protect public health during the pandemic will not be out of pocket for the period they were laid off".

“The Government is providing a special payment of up to €2,268 tax-free to bridge the gap in redundancy entitlements,” he said.

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“We want to make sure workers don’t lose out on payments and, on the other hand, business owners aren’t faced with a flood of additional redundancy costs, just when they’re trying to get back on their feet,” he said, noting the Act provided the best outcome for both employers and employees.

Online applications

The scheme will be administered by the Department of Social Protection and will be employer-led. Applications can be made online via the Welfare Partners website.

"For the majority of eligible employees, their employer, liquidator or relevant officer will apply for this payment on their behalf," Minister for Social Protection Heather Humphreys said.

The amount each worker receives will depend on the length of time they were laid off for due to Covid before they were made redundant, and the calculation will be based on existing statutory redundancy rules.

The maximum figure of €2,268 relates to workers who earned €600 or more a week and were laid off due to the virus for the entire period between March 13th, 2020, and January 31st, 2022.

"Many sectors are rebounding since the lifting of Covid restrictions, which is a real tribute to the resilience of Irish businesses and their workers," the Minister of State for Business, Employment and Retail, Damien English, said. "While we have good reason to be optimistic, a uniform and smooth recovery is not guaranteed and, regrettably, some redundancies will arise."