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Redundancy Query

  • 06-02-2014 10:43am
    #1
    Registered Users, Registered Users 2 Posts: 553 ✭✭✭


    Hi,

    A friend has an option of taking a redundancy package from his company. He has worked with the company for over 10 years and has been working full-time for over 16 years.

    If he were to take the package would he be entitled to state benefit until he finds another job or how does this work?

    Thanks


Comments

  • Moderators, Business & Finance Moderators, Regional South Moderators Posts: 6,854 Mod ✭✭✭✭mp22




  • Registered Users, Registered Users 2 Posts: 2,758 ✭✭✭eastbono


    If <55 years of age and going to get a redundancy package of >€50,000 there is a disqualification period and best to not sign on until this period is over...
    Redundancy

    If you are under 55 and get a redundancy payment of more than €50,000 you are disqualified from claiming Jobseeker's Benefit. The table below shows how long you may be disqualified for. The length of the disqualification is at the discretion of the deciding officer (who can take your circumstances into account). Any period of disqualification is subtracted from your total Jobseeker's Benefit entitlement. So if you are disqualified for 3 weeks (which is 18 days payment) your JB claim starts on day 19. Note that people who take voluntary redundancy and do not get a redundancy payment of over €50,000 can claim jobseeker's payments immediately.
    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


  • Registered Users, Registered Users 2 Posts: 553 ✭✭✭whodafunk


    eastbono wrote: »
    If <55 years of age and going to get a redundancy package of >€50,000 there is a disqualification period and best to not sign on until this period is over...
    Redundancy

    If you are under 55 and get a redundancy payment of more than €50,000 you are disqualified from claiming Jobseeker's Benefit. The table below shows how long you may be disqualified for. The length of the disqualification is at the discretion of the deciding officer (who can take your circumstances into account). Any period of disqualification is subtracted from your total Jobseeker's Benefit entitlement. So if you are disqualified for 3 weeks (which is 18 days payment) your JB claim starts on day 19. Note that people who take voluntary redundancy and do not get a redundancy payment of over €50,000 can claim jobseeker's payments immediately.
    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

    Thanks guys for the replies. One last question will the redundancy payment be taxed?


  • Registered Users, Registered Users 2 Posts: 2,758 ✭✭✭eastbono


    Dont know.... but afaik yes... but I presume there is a taxation/revenue section on boards and best to ask there


  • Registered Users, Registered Users 2 Posts: 8,087 ✭✭✭BeepBeep67


    For that length of service the best way to reduce tax would be to go down the superannuation route, which is the average of your last 3 years salary divided by 15 and multiplied by the number of full years service. Worth noting you can only do this once, so can't play it again in the future for a pension lump sum.
    Worth checking with the company if the provide some taxation consultancy services as part of the redundancy.


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  • Registered Users, Registered Users 2 Posts: 2,490 ✭✭✭amtc


    Absolutely no way follow some of the advice here.

    Sign on as soon as possible - there may be a waiting period (but there may not) and appts are running 2 weeks out at the moment, so do it asap.

    Part of the redundancy payment isn't taxed and part is.


  • Closed Accounts Posts: 3,228 ✭✭✭mrsbyrne


    amtc wrote: »
    Absolutely no way follow some of the advice here.

    Sign on as soon as possible - there may be a waiting period (but there may not) and appts are running 2 weeks out at the moment, so do it asap.

    Part of the redundancy payment isn't taxed and part is.

    ....but he can't sign on till his first day of unemployment.


  • Registered Users, Registered Users 2 Posts: 2,758 ✭✭✭eastbono


    amtc wrote: »
    Absolutely no way follow some of the advice here.

    Sign on as soon as possible - there may be a waiting period (but there may not) and appts are running 2 weeks out at the moment, so do it asap.

    Part of the redundancy payment isn't taxed and part is.

    If there is a disallowance due to the amount of redundancy then they are better off not applying for jsb until after this period of disallowance as their time on jsb will be shortened.


  • Registered Users, Registered Users 2 Posts: 2,637 ✭✭✭brightspark


    eastbono wrote: »
    If there is a disallowance due to the amount of redundancy then they are better off not applying for jsb until after this period of disallowance as their time on jsb will be shortened.


    Are you sure? Otherwise the person not only won't get paid anything during the disqualification period but they will also have lost the payments for the weeks they hadn't signed on for!

    JSB is paid for up to 39 weeks LESS any disqualification period.

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


  • Registered Users, Registered Users 2 Posts: 2,758 ✭✭✭eastbono


    Are you sure? Otherwise the person not only won't get paid anything during the disqualification period but they will also have lost the payments for the weeks they hadn't signed on for!

    JSB is paid for up to 39 weeks LESS any disqualification period.

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

    Im postive if there is going to be a disqualification period then the person is better off not signing on until after this period which means that they have technically already served their disqualification period and will receive jsb for the full period.


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  • Registered Users, Registered Users 2 Posts: 33 Sharkey_dub


    I recently took the redundancy package offered to me. I had to wait for 9 weeks according to the chart shown above in order to qualify for the full 9 months JSB. Your lump sum will be taxed but if you finished work before the 1st of January then you will be entitled to Top slicing tax relief. This was done away with in the last budget so if your lump sum is paid after 1st of January then you will get NO tax back.


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