Non Statutory Redundancy

Camps

Hi,

There's a possibility that I'll be offered redundancy in the next couple of months due to an overstaffing pickle my manager has managed to get himself in to. I'm working with my company for 25 years so it could be worth taking if offered.

The redundancy opportunity would be relevant to my role only.

I'm aware that the statutory payment is tax free with a ceiling but I have 3 questions re non statutory payment.

1) Is this something that can be haggled over? For example, if the company offered me 3 weeks per year can I try to hold out for 4?

2) At what point would I start paying tax and what would the tax rate be? I'm currently on the higher rate of tax.

3) Can companies write off redundancy payments? Obviously this would be a factor in what benefits them the most.

Thanks.

Bass Reeves

You can always bargain over redundancy. A lot will depend on whether other wish to take it as well. The company may decide it's cheaper to make someone with less services redundant.

Here are the different methods of calculating the taxation of redundancy

https://www.citizensinformation.ie/en/employment/retirement/income_tax_in_retirement/retirement_lump_sum_taxation.html

Yes your employer can write it off against tax. But company tax os only 15%

Camps

https://www.boards.ie/discussion/comment/119345561#Comment_119345561

Thanks for the advice