Redundancy Packages

jimmynizon99

I have been working for a very large US MNC for 14 years. A redundancy package might be on the table. I need to get a handle on what other companies have offered in the past. In particular Dell, Intel, Microsoft, HP etc.. Any information you can provide would be greatly appreciated.

Many Thanks

JamesN.

ongarite

I was made redundant from a US MNC and know from working in another in the list above that both gave 6 weeks per year of service + 2 week statutory capped at a maximum of 2 years salary.

eds guy

If it's a US MNC that was recently taken over by another US MNC you are talking about then it's 5 week plus statutory = 7 weeks total.

If you are accepted they give you a lump sum figure which you can then decide to accept or reject.

Not as good as Ron and Dick but I'd jump.

Eurorunner

Have always wondered why the bigger companies bother offering good redundancy deals when they don't have to??
Is it just PR? Surely there must be some other angle on it - or way they get this money back?

Mr. Incognito

The government has a scheme for refunding a portion of the monies that companies pay in redundancy- do you not remember the furore over Irish ferries availing of this after they had fired all their Irish workers to bring in cheaper foreign labour.

brightspark

Don't forget statutory is capped at 600 Euro per week and its two weeks per year of service + 1 week.

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


The company get 60% of this back

http://www.entemp.ie/employment/redundancy/role.htm


Also remember you will have to pay income tax on some of the non-statutory payment, how much depends on a lot of different factors and there are various methods of calculation that can be used.

http://www.revenue.ie/forms/it21_form1.pdf


There are also ways of reducing the tax payment by putting some of it into a pension fund (IF you are the right age etc). You should get some professional advice to work out the various options


There are a few reasons why companies will pay more than statutory redundancy

1, Because they write it off as a business loss.
2, To enable a smooth rundown-transfer of the business.
3, Because they are looking for voluntary redundancies and want to encourage employees who are too set in their ways to move on so that they can implement new working arrangements.
4, Because a forward thinking union put it into an agreement at a time when the company wasn't even contemplating redundancies.
5, A good redundancy package is often an incentive for employees not to change jobs.
6, Good PR, but not all companies are that worried about PR.

Thierry

If a company has paid non-statutory redundancy (ies) in the past (i.e. 5 extra weeks per year of service), will it have to follow the same rule for all employees, present or future redundancies?

Can the company revert to the statutory redundancy in the future?

Can a company use different redundancy packages for some employees or does it have to use only one package for all, and forever?