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Voluntary Redundancy - what welfare entitlements?

  • 01-02-2009 12:33PM
    #1
    Top Dog
    Registered Users, Registered Users 2 Posts: 4,175 ✭✭✭


    Our company has recently announced that they're looking for a number of voluntary redundancies. They're also severly cutting working hours for some staff, so it now has people wondering if they wouldn't be better off taking the voluntary package on offer, and applying for JSB while searching for new employment.

    The hours cut means that some people will only have 1 days work a week for the next 3 weeks and will have to sign on to try still cover their outgoings.

    This of course has raised no end of questions, so can anyone here shed some light on what people might be entitled to and how soon they could hope to start recieving whatever it is they're due.

    If someone accepts the voluntary redundancy package, can they sign on for Job Seekers Benefit straight away?
    If the redundancy amount is not that considerable (say €20k) will it affect any claims?
    Can they also seek Rent Supplement, medical card etc?

    For example, I'll take my own situation. I'd get somewhere between €10k-€16k as my redundancy package (figures haven't been finalised for the package yet hence the €6k difference). My wife is currently doing a FAS course and is recieving pay as part of this. If I accept the redundancy will her earnings be affected? Will I be entitled to the full amount of JSB? Would we be able to claim for Rent Supplement since she's currently on a full-time FAS course?

    The way I'm looking at it at the moment is that the redundancy would cover all the basic out goings for somewhere between 6-10 months (rent, bills, loans etc). Any JSB that I might be entitled to would cover the day to day costs like fuel for travelling to interviews, food etc. The current situation at work means that I'll only have 1 days work a week for the next 3 weeks and I'll have to sign on for the other days. The forecast isn't very bright either so its not impossible to suggest that there may be further cut-backs in the short-term at least, and I'm actually quite worried about meeting all the bills if things continue like this.

    Should I just accept the redundancy, sign on and get stuck in looking for a new job? Or should I try weather the storm in the hope that my job will be safe? Any opinions would be very welcome at this moment in time. :(


Comments

  • #2
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    You'll get JSB as you qualify for redundancy(enough stamps paid) no matter how much savings or package you get and it does not matter who lives with you as its not means tested.
    Your lump sum won't be taxed either as its considered 'low'

    All explained here on redundancy http://www.citizensinformation.ie/categories/employment/unemployment-and-redundancy/redundancy/redundancy-payments

    You'll get medical card too assuming your wife is on very low pay so i'd say your ok there.

    Rent Supplement is trickier. I'm not sure on this but i think its means tested for JBS people and thats the downer. I'd hazard a guess that ye both are on welfare so that ye would get the maximum full amount obtainable, open to correction on this. Limits are attached.

    Talk to your CWO(Community Welfare Officer) about this issue


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