Enhanced Redundancy.

cityboyjim

I have a question regarding enhanced redundancy packages .The Company I work for is relocating and there is a Redundancy package about to be offered to all Employees .Will the amount offered be age related . Will workers in their sixties get the same offer ie weeks per year of service , as everybody else or will it be less due to being nearer retirement age .Thank you in advance.

Mrs OBumble

If it's age-related, it's more likely to be called Enhanced Early Retirement instead of redundancy. Which may have tax implications.

cityboyjim

Thank you very much .So the Company must pay the same amount of weeks to everybody regardless of the age of the worker .

Mrs OBumble

https://www.boards.ie/discussion/comment/121626261#Comment_121626261

I never said that.

There are only a few firm rules. One is that discriminating on the basis of age isn't allowed.

But it's likely that people with a shorter time until retirement may be offered alternative approaches, instead of being selected for redundancy.

cityboyjim

Surely if its going to cost the Company the same amount of money it would make sense to offer redundancy rather than enhanced early retirement, and not involve unnecessary tax implications .Thank you again for your help .

danny004

It kind of is age related in that a company is allowed stipulate you cant earn more in redundancy than you could earn in your remaining time with the company so redundancy reduces accordingly as you approach retirement . At least that was the rule in the company i worked for and it was union negotiated package in a multinational so it would be the norm unless you have an unbelievable generous company who would ignore that rule but i doubt one exists

cityboyjim

Two years left to retirement so wouldnt be getting even half what I would have left to earn .The info is great .Thanks a million .