Redundancy payment

newmug

Hi folks. I got laid off, and was paid a nice redundancy package. I am getting paid for another few weeks, so dont have to sign on just yet. I have two questions about my redundancy payment:

A) How much are you allowed before they cut your dole payments?

Should I declare it at all?


If you are allowed a certain amount of money before they cut your dole, does that include all your savings? How can you protect your nestegg and maximise your dole entitlements (legally of course!). Also, if I dont declare my redundancy money, would they find out about it? What would happen if they do?

Marsden

newmug wrote: »

. Also, if I dont declare my redundancy money, would they find out about it?

They'll want to know the circumstances surrounding your unemployment and will want to see proof of unemployment. They will also find out about your redundancy too. Haven't a clue about what the limit is before they allow you to sign on.

mp22

Here you go http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/unemployed_people/jobseekers_benefit.html


B)The only advice that is allowed here is YES declare it all.

newmug

mp22 wrote: »

Here you go http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/unemployed_people/jobseekers_benefit.html


B)The only advice that is allowed here is YES declare it all.

Fair enough. But is it usual for people not to?

mrsbyrne

you dont have any choice about whether you'll "tell" them or not. you have to complete a form for SW
http://www.welfare.ie/EN/Forms/Documents/UP1.pdf
question 16 in part 3 asks you if you received a redundancy payment. you can have had up to 50000 redundancy without it affecting your entitlement to a jobseekers payment. incidentally you are applying for jobseekers benefit, not the dole
http://www.welfare.ie/EN/Forms/Documents/UP1.pdf

mrsbyrne

see also this from citizensinformation.ie regarding documentation required for signing on
Checklist when applying for Jobseeker's Benefit


Introduction
When you apply for Jobseeker’s Benefit you must bring certain documents.

If you lose your job or are made redundant

If you lose your job or are made redundant you should bring your P45 or a letter from your employer confirming the last day you worked.

If you don’t have your P45 or a letter from your employer you should still apply. However, it is important to bring either your P45 or a letter from your employer as soon as possible to your Social Welfare Local Office.

If you have difficulty getting your P45 from your employer tell the member of staff dealing with your claim at your Social Welfare Local Office.

If you are made redundant you will also need to bring documentation showing how much redundancy you have received. If you are getting only statutory redundancy you need to bring your RP 50. If you are getting more than statutory redundancy you should bring a letter from your employer stating how much redundancy you have been given. If your claim for redundancy hasn’t yet been settled you should still apply for Jobseeker’s Benefit. When you get your redundancy payment you must inform your Social Welfare Local Office. Find out more about your rights to redundancy payments.

mp22

newmug wrote: »

Fair enough. But is it usual for people not to?

I have no idea,if you don't mind we will not be discussing it.

Delancey

OP - the social welfare office will ask about your circumstances including details of redundancy payments - not disclosing the full amount is not an option , they can ask for documentary proof.

newmug

mp22 wrote: »

I have no idea,if you don't mind we will not be discussing it.

Well I kinda do mind, that was the whole point of the thread!

Look, I just want to know how to LEGALLY maximise my JSA/JSB. I'm new to all this and dont want to get screwed because I didnt know something or wasn't aware of the way the system works. I dont think thats too much to ask?

So I do have to declare my redundancy payment? Fair enough. Is there any way to use it to my advantage from a social welfare point of view? For example, if I seek help with my mortgage, would I be refused because of my redundancy payoff? Would I be better off using all of my payoff to take a chunk off the mortgage, effectively leaving me with nothing, and then look for mortgage assistance?

mp22

Personally I would keep a large chunk of the redundancy for rainy day money.
So if you get 100,000 you will lose 9 weeks JSB.
In 12 months time you need to claim JSA your 100,000 will mean you lose 270 per week http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/means_test_for_social_welfare_payments/means_test_for_jobseekers_allowance.html
If you reduce your savings to 20,000 you have no loss of JSA,

You could be dammed if you do and dammed if you dont.

Lugh Ildanach

Jobseekers Benefit is not affected by savings (although income from a parnter's job or savings may affect whether you are entitled to get an increase for your partner/spouse).

Redundancy payments over 50,000 affect Jobseekers Benefit, there is a sliding scale going from 1 week's disqualification for a payment of 50,000 up to a maximum of 9 weeks disqualification.

As long as you have 5 years work history as an employee (which you probably do to be getting a significant redundancy payment) then you will get your Jobseekers benefit for a year. Only after this time would your savings be taken into account.

eastbono

This is the info from welfare site for redundancy payments.

Redundancy
If you are under 55 and get a redundancy payment of more than €50,000 you will be disqualified from claiming Jobseeker's Benefit for the following lenght of time:

Amount of Redundancy Payment Period of Disqualification
€50,000.00 - €55,000 1 Week
€55,000.01 - €60,000 2 Weeks
€60,000.01 - €65,000 3 Weeks
€65,000.01 - €70,000 4 Weeks
€70,000.01 - €75,000 5 Weeks
€75,000.01 - €80,000 6 Weeks
€80,000.01 - €85,000 7 Weeks
€85,000.01 - €90,000 8 Weeks
€90,000.01 and over 9 Weeks