Does it make sense to take redundancy?

mirwillbeback

Hi,

Been offered voluntary redundancy in my job and I am sure I am missing something, but it seems too good to turn down, even in the current climate.

I am in my job 8 years, have 2 children and girlfriend that I live with ( she unemployed ). Offer is 80k before tax, approx 55 after.

I currently earn about 3200 a month, after this month's levies are brought in it will be under 3,100.

By taking the package, after 7 weeks what I can see I am entitled to is Jobseekers benefit 1,500 pm + mortgage interest supplement 404 pm = 1,900. So I would be worse off by 1,200 a month but if I was to make that up from my money for a year, I'd be earning as much as now and still have a small fortune in the bank.

What do you guys think, such a big decision but I wouldn't be one to sit around all day, I'd be out looking for jobs immediately.

Any persuasive arguments either way?

SoupyNorman

You'd blow the redundancy out yer arse before you'd get to smell it. A regular income is alot more secure and sensible.

Kess73

How is jobseekers benefit coming to 1,500 a month?

I was let go about eight weeks ago and mine is €204 a week.



But if you can get everything you say you can get in your post, then it would make more sense to take that package, before where you work runs into more difficulty and maybe closes

dr.bollocko

Moved from AH.

From here on in read the charter before posting. Any useless replies may result in infractions / bans.

mirwillbeback

Kess73 wrote: »

How is jobseekers benefit coming to 1,500 a month?

I was let go about eight weeks ago and mine is €204 a week.



But if you can get everything you say you can get in your post, then it would make more sense to take that package, before where you work runs into more difficulty and maybe closes

Hi,

Jobseekers is 204 + 100 for gf + 26 per child.

bladespin

Was in a similar situation at the start of the year (not voluntary though ) it was ok, the jobseeker benefit covered the bills ok for us (2adults 1 baby) but it was a worry, personally I'd wait until there was some possibility to find another job fairly quick (or start your own???).
There are jobs out there (I got one).

lynchie

Having the 55K from your redundancy will affect your ability to get mortgage interest supplement as cash and savings are used to determine eligibility for it.

kmick

You can take the mortgage supplement out of that equation. You would have to be bezy mates with Brian Cowen himself to get that.

doolox

Thats a good package and it would depend on your personal circumstances.
If you are at a bad age for job replacement and the Company is reasonably sound I'd stay and maybe get another few years service clocked up then if there is a second round you might have more money and a better time for getting a job.
There are simply no jobs out there at the moment and once the Summer holidays kick in the HR departments will be thinking of sunning themselves in their foreign holidays and won't be thinking of hiring anybody until September at least.
If you are a permie and have a good defined benefits pension then think carefully about leaving the job and throwing that benefit away.
New jobs aren't giving defined benefit pensions anymore.
If you are over 55 then retraining for a new job must be done in a very short time since you only have less than 10 years for the training to pay you back. Younger people may be in a more flexible position.
If you have a well paid job and little or no formal qualifications then bear in mind that any education to second level ( Leaving Cert) will only get you minimum wage job at the moment and you will be in a very long queue......
Try and get as much financial information about your company as possible and try and get as much info on your sectors future prospects and direction.
I was in a similar position 2 years ago and was in a job i hated and in a company whose direction and prospects didn't suit me.
That time they had over 600 applications for 300 redundancies and now they are letting go another 300, this time they are having trouble getting people to make the plunge.
While I realise there is a snowballs chance in hell of me getting a job with as many benefits as I had, my health and sanity come first.
It is a tough decision and need a lot of info and thinking.

mirwillbeback

appreciate the comments from all. thanks

IsThatSo?

Package does sound good and I can guess how tempting it must be.................. and yes, it would be lovely to kick back for a year and spend quality time with your GF and kids I suppose the biggest factor in your decision has to be whether you would find it easy to get another position in your line of work in a year.....................that 55k really won't go all that far if you end up long term unemployed.

Good luck with whatever you decide

mikemac

mirwillbeback wrote: »

By taking the package, after 7 weeks what I can see I am entitled to is ...... mortgage interest supplement 404 pm

I highly doubt you'll get this benefit.
By all means apply but plently of people have had their claims rejected.

So give it a go but don't post "entitled"