Employer suggesting incorporating pay in lieu of notice with redundancy payment?

sexmag

Hi,

I'm aware of a redundancy situation, this persons contract states they are to be given 12 weeks notice of cease of employment and payment in lieu.

They are being offered a couple of weeks per year of service and this incorporates they're pay in lieu of notice so they will leave earlier.

I Would be of the opinion that payment in lieu would be taxable under PRSI as you would be normally working for those 12 weeks and as such would pay all your relevant taxs.

My question is as the employer is suggesting adding the 12 weeks into the redundancy i.e they are given redundancy of 4 weeks per year, technically 3 with another 12 added on as per their payment in lieu, they are effectively avoiding paying tax on it as it may fall under the redundancy exemptions after their statutory payment.

Is this legal or tax avoidance by the company?

Thanks

1hnr79jr65

Hi Sexmag, i think we work for same company based on your description of redundency package.

They would have to pay your 12 weeks period seperately from redundency as this is a minimum term as part of your contract. Howver you would pay normal tax as per this.

If you are in same company this was confirmed by meeting of non union staff with HR today so you would probably heard of this.

sexmag

Sour Lemonz wrote: »

Hi Sexmag, i think we work for same company based on your description of redundency package.

They would have to pay your 12 weeks period seperately from redundency as this is a minimum term as part of your contract. Howver you would pay normal tax as per this.

If you are in same company this was confirmed by meeting of non union staff with HR today so you would probably heard of this.

The inconsistencies between stories is shocking really

1hnr79jr65

sexmag wrote: »

The inconsistencies between stories is shocking really

Problem is between HR and person brought in to comepete the redundency there is a massive lack of communication.

The difference in packages described friday to today was down to someone "misspeaking".........

sexmag

Sour Lemonz wrote: »

Problem is between HR and person brought in to comepete the redundency there is a massive lack of communication.

The difference in packages described friday to today was down to someone "misspeaking".........

Thanks for your response, im getting that information now so it's syncs up with yours.

4 weeks plus a 12 week payment in lieu but taxed.

1hnr79jr65

sexmag wrote: »

Thanks for your response, im getting that information now so it's syncs up with yours.

4 weeks plus a 12 week payment in lieu but taxed.

Still not confirmed though, they promised to give offer in writing today, but now it will be tomorrow, when i see in in writing i will believe it as so much bs at this stage.

Also they cant give minimum notice of redundency until friday this week at earliest. :pac: