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Quick question re redundancy pay

  • 06-09-2008 9:45pm
    #1
    Miss Fluff
    Closed Accounts Posts: 5,673 ✭✭✭


    My brother's girlfriend was laid off a couple of days ago. She is a conveyancing solicitor and due to the construction sector going crash bang wallop a number of them were laid off. She has been with her company since 2003 so does anyone know what kind of pay out she is entitled to?Is it a certain amount per year's service or how does it work?Thanks.


Comments

  • #2
    ixoy
    Moderators, Entertainment Moderators Posts: 18,001 Mod ✭✭✭✭ixoy


    Two weeks per year worked - the total is tax free assuming she hasn't received a previous redundancy lump sum in the last ten years. Some companies pay beyond that but they're under no obligation to (and generally do it as part of severance packages when they're trying to cut back).


  • #3
    Bluetonic
    Registered Users, Registered Users 2 Posts: 7,588 ✭✭✭Bluetonic


    ixoy wrote: »
    Two weeks per year worked - the total is tax free assuming she hasn't received a previous redundancy lump sum in the last ten years. Some companies pay beyond that but they're under no obligation to (and generally do it as part of severance packages when they're trying to cut back).
    Thats partial information about the statutory redundancy and could be a bit misleading.

    Correct that it's two weeks salary per year of service but it's capped at 600 euro per week if your weekly salary was above that (ie circa 31,200 salary) plus you add one extra week as a bonus week. Fractions of years are also calculated and the fraction of the 600 euro is paid.

    Companies get a 60% rebate of statutory redundancy off the state.

    Statutory redundancy payments are totally tax free.

    For non statutory payments the first 10,160 euro + 765 euro for each year of service is tax free, plus an additional 10,000 in the cases where you haven't received a tax-free non statutory lump sum in the last 10 years. There are also a few pension clauses which may make the extra 10,000 unavailable.

    More information here.
    http://www.citizensinformation.ie/categories/employment/unemployment-and-redundancy/redundancy/redundancy-payments

    Calculator here
    https://redundancy.entemp.ie/rpsportal/initialiseRedundancyCalculatorAction.do?locale=en

    Taxation
    http://www.citizensinformation.ie/categories/employment/retirement/income-tax-in-retirement/retirement_lump_sum_taxation


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