Open applications for Covid-related severance pay

Severance compensation of more than €2,000 will be made available for those who were made redundant due to Covid-19 restrictions.

The scheme, which has been announced by Tánaiste and Enterprise Minister Leo Varadkar, has been opened for applications.

The special payment of €2,268 will be made tax-free to close the gap in severance rights for workers who were laid off due to public health restrictions between March 13, 2020 and January 31, 2022.

“This new law will mean that those who were laid off to protect public health during the pandemic will have no out-of-pocket expenses during the period they were laid off,” Varadkar explained.

“We want to make sure that workers don’t miss out on pay and, on the other hand, business owners don’t face an avalanche of additional layoff costs, just as they’re trying to get back on their feet. This law provides the best outcome for both employers as for the employees,” he added.

The plan will be administered by the Department of Social Protection and will be run by the employer.

“This means that for most eligible employees, your employer, adjuster or relevant official will apply for this payment on your behalf,” Minister Heather Humphreys said.

“Applications can be made online through the Welfare Partners website,” he explained.

More information about the scheme is available at www.gov.ie/crlp.

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