Redundancy - Package or Step down job....

Retail Mngr

Hi

I have been selected for redundancy by my employer due to restructuring.

I have been offered a choice of...

Redundancy package
OR
a step down position with loss of earnings & position and NO redundancy package.

Is this right?
I understood that if the alternative role was equal then the alternative role AND redundancy package was an option?

Thanks

Paul

tatli_lokma

If you accept the lower salary, then AFAIK this is what any later redundancy payment will be based upon.

When they say redundancy package, I assume they mean ex-gratia additional payments to the statutory redundancy.

If not, and they are saying there is not stat redundancy, then this is wrong, they cannot do that.

Also, you need to consider what this 'package' includes. If it is a couple of hundred/thousand Euro additional payment on top of stat, then it might be better to take the lower grade role and take your chances for the sake of a couple of hundred euro. Factor in loss of earnings while you try to find a job, so if the 'package' was €2k on top of statutory, how then a month or so out of work would quickly equal that, so it would be better to stay employed.

Also, for stat redundancy, the maximum wages allowable is €600 per week and you get 2 weeks salary per year of service plus 1 week on top of that. If both roles are paying over €600 a week, then the pay loss won't affect the redundancy payout.

I think the first thing you need to do is find out clearly what the 'package' on offer is, before you can decide what it is worth to you to stay.

ETA - just in relation to your comment about moving role AND getting redundancy - no this can't happen. You are either reassigned and avoid redundancy or you get made redundant. Of course, the reassigned job can be made redundant at a later stage and then you would get redundancy, but you can't get a payout AND keep working for the company.

Ray Palmer

It really depends on whether there is employment in your sector or not. If there is take the money and go. Most initial redundancy packages are better than the later ones. It is the strategy they use to make sure people don't leave as people expect the same package later.

I have seen this happen time after time. As stated you don't get the redundancy and get the lower job. Most redundancy actually have a clause saying you can't be rehired for a set period of time.

tatli_lokma

Or if you do get rehired within a year, you have to pay back pro-rata the redundancy you got.

Bandana boy

there are tax implications for how redundancy is paid which if you could be made redundant and “change job” within the company this would make defrauding the state very easy.

The rule is if they offer an equivalent job they do not have to offer redundancy , if they do not offer an equivalent job they have to offer the choice of redundancy or the job .

Also keep in mind that future redundancy will be based on your salary averaged over the previous year.