Hypothetical redundancy question

Chopper

If you arrived to work today and were offered a redundancy package of, lets say, one years gross salary - given the current climate of "financial meltdown" - would you take it and risk being out of work for any length of time ?

Take it as a given that other companies in your line of work are also laying people off !

jum4

I'd take without a thought.

seamus

Depends on what my options were - can I get another job with a similar salary in the next 12 months? Also, if you I don't take it, will I lose my job anyway?

From a purely logical point of view, if you get paid a year's salary as a redundancy payment, you will have to pay tax on it. Which may or may not mean that you effectively get less than a year's salary.

See the rules here: http://www.revenue.ie/index.htm?/leaflets/it21.htm
and work out how much you will get in redundancy versus how much you would get if you stayed on for the next 12 months.

If you're likely to land a similar job, then it would be worth taking the payment IMO.

Pythia

I'd take it. You could get another job in something until you get another you really want. Save the payment for a rainy day.

IrishWhite

Have you been given a timeframe to decide normally this would be the case or if the operation is winding down most companies will give you a stay on clause that says you will keep your job until they shut and then get your severance pacakge . If this is the case find yourself a new job before you take the lump.

Secondly you need to consider how long your redundancy will cover your living expenses for if you dont find a job. I have been offered severance by the same company twice in ten years and both times have turned it down, because long term you will still need an income after the redundancy has gone and given the current climate a new job may be hard to come by.

If you are young and single and want to sod off around the world on the piss take it, however if you have children and a mortgage think long and hard before you do. Remember also if you dont take it this time the longer your service the more you will get in the end.

Regards Robbie

Eoin

If I was guaranteed that after pension and health care (both of which I get at the moment), I wouldn't be losing out over the 12 month period, then I think I would probably take it.

If you have some degree of comfort between your salary and living expenses, then tightening the belt a little would buy you even more time to give other stuff a go.