Redundancy Payments

mr.boombastic

Unfortunately redundancy looks like it is on the cards for myself at the moment. quick question in relation to statutory redundancy payments, is it taxed? i read that the statutory payment is 2weeks for every year (up to 600 euro per week) and one weeks wages, is there any other entitlements i have, holiday pay?? etc ??

samtoo

Sorry to hear about your impending redundancy. Redundancy packages differ from company to company but the Citizen Advice Bureau would be worth getting in touch with. In the mean time, start hoarding stationary!

Nody

mr.boombastic wrote: »

Unfortunately redundancy looks like it is on the cards for myself at the moment. quick question in relation to statutory redundancy payments, is it taxed? i read that the statutory payment is 2weeks for every year (up to 600 euro per week) and one weeks wages, is there any other entitlements i have, holiday pay?? etc ??

You're entitled to any holiday's you have left along with any shift allowance etc. that you've worked in. You're most likely not going to get any bonus (if you had one) if you're not employed at the time they pay it out.

bryaner

I'm not 100% but I think it's not taxable until after 50k.

Sorry to hear btw, welcome to the club.

Edit: just read, Statutory payments are always tax free.

Newaglish

Statutory redundancy payments are tax free - if you have two years of service, you'll be entitled two 2 weeks per year of service plus 1 bonus week, pro rated for the number of days you've worked (i.e. a half year will give you 1 week). You can use this website to calculate your statutory redundancy payment.

Any money given above this (known as ex-gratia) is taxable, but there are certain termination reliefs available (this applies mostly for people receiving large packages on retirement and it's probably not relevant in this case).

You are entitled to be paid for any holidays worked up but not used and obviously for any wages that are outstanding.

You are also entitled to the following notice period based on your period of service:

• 13 weeks to 2 years - 1 week
• 2 years to 5 years - 2 weeks
• 5 years to 10 years - 4 weeks
• 10 years to 15 years - 6 weeks
• 15 years or more - 8 weeks

Keep in mind that your contract may provide for a greater notice period (often 1 month), but may not provide for a lower notice period than outlined in legislation. So if your statutory notice is 8 weeks, and your contract says 1 month, you are entitled to the full 8 weeks.

If you are not allowed to work your entire notice period, you are entitled to be paid in lieu of this notice period and that pay is taxable.

If you are being made redundant by an insolvent employer (i.e. company goes into liquidation), there are some additional restrictions so let us know if that is the case!

mr.boombastic

thanks for the feedback

Silcocky

Sorry to hear of your situation...you can work out exactly what you'll be entitled to using the below link.

http://www.redcalc.entemp.ie/

Best of luck

RGMR2

Hi all. Mr. Bombastic. Sorry to hear the news. I got confirmation that Dec 23rd will be my last day for a company I'm with for just over 3 years. Feel like a character in the Christmas Carol, going down to sign on on Christmas eve:(. Is there any entitlement to be paid for the Christmas holidays if you work up until the day you would normally get them? Just seems like you should... Thanks in advance.