Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Redundancy - Package or Step down job....

Options
  • 24-07-2013 10:19pm
    #1
    Retail Mngr
    Registered Users Posts: 26 ✭


    Hi

    I have been selected for redundancy by my employer due to restructuring.

    I have been offered a choice of...

    Redundancy package
    OR
    a step down position with loss of earnings & position and NO redundancy package.

    Is this right?
    I understood that if the alternative role was equal then the alternative role AND redundancy package was an option?

    Thanks

    Paul
    Tagged:


Comments

  • Options
    #2
    tatli_lokma
    Registered Users Posts: 3,332 ✭✭✭tatli_lokma


    If you accept the lower salary, then AFAIK this is what any later redundancy payment will be based upon.

    When they say redundancy package, I assume they mean ex-gratia additional payments to the statutory redundancy.

    If not, and they are saying there is not stat redundancy, then this is wrong, they cannot do that.

    Also, you need to consider what this 'package' includes. If it is a couple of hundred/thousand Euro additional payment on top of stat, then it might be better to take the lower grade role and take your chances for the sake of a couple of hundred euro. Factor in loss of earnings while you try to find a job, so if the 'package' was €2k on top of statutory, how then a month or so out of work would quickly equal that, so it would be better to stay employed.

    Also, for stat redundancy, the maximum wages allowable is €600 per week and you get 2 weeks salary per year of service plus 1 week on top of that. If both roles are paying over €600 a week, then the pay loss won't affect the redundancy payout.

    I think the first thing you need to do is find out clearly what the 'package' on offer is, before you can decide what it is worth to you to stay.

    ETA - just in relation to your comment about moving role AND getting redundancy - no this can't happen. You are either reassigned and avoid redundancy or you get made redundant. Of course, the reassigned job can be made redundant at a later stage and then you would get redundancy, but you can't get a payout AND keep working for the company.


  • Options
    #3
    Ray Palmer
    Registered Users Posts: 8,352 ✭✭✭Ray Palmer


    It really depends on whether there is employment in your sector or not. If there is take the money and go. Most initial redundancy packages are better than the later ones. It is the strategy they use to make sure people don't leave as people expect the same package later.

    I have seen this happen time after time. As stated you don't get the redundancy and get the lower job. Most redundancy actually have a clause saying you can't be rehired for a set period of time.


  • Options
    #4
    tatli_lokma
    Registered Users Posts: 3,332 ✭✭✭tatli_lokma


    Or if you do get rehired within a year, you have to pay back pro-rata the redundancy you got.


  • Options
    #5
    Bandana boy
    Registered Users Posts: 4,325 ✭✭✭Bandana boy


    there are tax implications for how redundancy is paid which if you could be made redundant and “change job” within the company this would make defrauding the state very easy.

    The rule is if they offer an equivalent job they do not have to offer redundancy , if they do not offer an equivalent job they have to offer the choice of redundancy or the job .

    Also keep in mind that future redundancy will be based on your salary averaged over the previous year.


Advertisement