Voluntary Redundancy Questions

Mr. Mac

I work for a large multi national company in Dublin and have done so for over 11 years. Recently they announced a voluntary redundancy package plan and hope to get approx 1 in 6 people to leave the company via a very attractive package (8 weeks pay for every year worked).

Im all over this and counting down the days until the applications are requested. However I have a few questions that I need answered before I can crack open the champagne:

1. If VR is not applicable to my Dept can I still pursue via the Union (of which I am a member of)

2. If it is made available to a member of mt Dept does that mean it has to be made available to all members of that department?

3. I have heard a rumour that the VR package is not available to my Dept and if anyone applies for it they will be refused and the company will performance manage these people out of the company and avoid paying the VR. Is this plausible?

4. If i take the VR package I will get approx €100k gross pay. How much of that will I have to pay in tax?

5. Can I sign on the dole immediately if i get the VR?

6. If dont work for 12 months after the VR do I get to claim back tax? If so what exactly?

Apologies on the above and for the depth of the questions. If any more info is required just let me know.

:P

Eoin

Voluntary Redundancy is a two way thing. They are not obligated to offer it to everyone, nor grant it to people who apply for it. My last (very unionised) company didn't offer a VL package to IT initially, and there was SFA the unions could do. When they did open it up, they turned down a good few people who applied for it.

Don't know about the tax or dole stuff, but if you got 100K into your hand, would you seriously sign on immediately?

Mr. Mac wrote:

I have heard a rumour that the VR package is not available to my Dept and if anyone applies for it they will be refused and the company will performance manage these people out of the company and avoid paying the VR. Is this plausible?

That sounds a bit odd if they're offering a decent package to everyone else. Especially if there are unions in your company.

dan_d

PM sent

gerrycollins

you can sign on immediately however you will be exempt from one week of jobseekeers as your redundancy package exceeds €100k. does the offer include statutory redundancy? I wonder if your companys offer has the €600 per week maximun allowed?

your redundancy package is tax exempt.

Slasher

gerrycollins wrote: »

your redundancy package is tax exempt.

Only the statutory element of the redundancy payment is tax free. Tax may be applied to the non-statutory element.

See http://www.deti.ie/employment/redundancy/
and http://www.revenue.ie/en/tax/it/reliefs/lump-sum-payments.html

AFAIK, if you get a generous redundancy package, you will not get JSB for the first several weeks, but you shoud sign on and apply immediately.
You may get more info here:http://www.welfare.ie/EN/Pages/jajbfaq.aspx

bbam

gerrycollins wrote: »

your redundancy package is tax exempt.

No..
The statutary portion may be exempt, but you will pax tax