The tech layoffs in companies like Facebook and Twitter have made people in the job market more anxious. Even people who still have their jobs are starting to feel uncertain.
You may have heard saying that there have been layoffs or redundancies, and though they are used interchangeably, there is a significant difference between the terms.
Layoff often refers to the temporary suspension of employment due to economic factors such as a decrease in the company’s demand for products and services. In this scenario, the employees are typically notified that their employment will be terminated, but they may be eligible for rehire at a later date if the business conditions improve.
On the other hand, employment redundancy typically refers to the permanent termination of employment owing to changes in a company’s operation or structure. In redundancy, there is no scope for rehiring as the positions have already been eliminated due to alterations in the company’s business model or technology.
With that said, if you are facing a redundant situation at your office or feel that your company may be affected by the layoffs in Ireland and worldwide, this guide is for you. Get Redundancy Advice Kildare, Ireland the packages, benefits, redundancy rights and your immediate next step.
What Is Redundancy?
Redundancy refers to a specific situation in which an employee’s position is permanently eliminated due to changes in the company’s operations or structure. There are different types of redundancy that one can face.
Economic redundancy occurs due to the decrease in the demand for a company’s product or services.
Structural redundancy occurs when an employee’s position is eliminated due to changes in the company’s organizational structure.
Functional redundancy occurs when the company no longer requires an employee’s skills and expertise due to a change in the nature of the work or the introduction of new technologies.
Along with redundancy, you will also hear the severance. Both of these words are similar as they both involve the termination of employment, but there are differences between them.
Severance refers to the payment or benefits that an employer provides to an employee when their employment is terminated. In contrast, redundancy refers to the permanent termination of employment due to changes in the company’s operation or structure.
Average Redundancy Package In Ireland
The average redundancy package in Ireland depends on the number of years that you have spent with the company and your gross weekly pay. For more redundancy advice Kildare, start your redundancy consultation with experts from MKB today.
If you have 2 years (104 weeks) of service in your company, then you are entitled to receive a minimum redundancy payment, which is also known as statutory redundancy. Statutory redundancy payment is based on a calculation using your pay and the length of service.
Also, the statutory redundancy payment is tax-free. So when you receive the lump sum compensation for losing your job, a part of it will be tax-free.
For more details and redundancy support, consult with experts from MKB and know the amount you truly deserve.
Tax On Redundancy In Ireland
When you receive statutory redundancy payment, the amount you receive is completely tax-free. To be eligible for this tax-free compensation, you must have worked for the company for at least two years after turning 16 and have paid Irish PRSI at a qualifying class.
Pension lump sums and refunds may also be eligible for tax-free treatments, with certain limits and conditions applied.
What Benefits Can I Claim After Redundancy?
According to the Citizens Information website in Ireland, individuals who have lost their jobs may be eligible for unemployment social welfare benefits. If you have sufficient social insurance contributions, you may be eligible to receive Jobseeker’s Allowance, which is a means-tested benefit.
Depending on your circumstances, you may also be eligible for a medical card, GP visit card and other secondary benefits like Rent Supplement under the Supplementary Welfare Allowance Scheme.
Will Income Protection Cover My Redundancy?
Income protection is a type of insurance that provides a regular income source to individuals who cannot work due to sickness or disability. This type of insurance will continue its payment until the individual is able to return to work, retires or passes away.
Income protection insurance doesn’t cover situations where individuals lose their job due to redundancy.
What Will Happen If My Company Fails To Pay Redundancy?
Companies lay off employees due to several reasons and the most common among them is that they may not have enough financial resources to keep the business afloat.
But if your company becomes insolvent and cannot afford to pay redundancy, you are eligible.
To receive the payment from the government under the Social Insurance Fund.
Follow these steps:
Make yourself familiar with the Welfare Partners Service. If you don’t have an account, create one immediately, and to access it, you will need a Department of Social Protection Sub-Cert from Revenue.
For the employer:
- Complete and submit the online application form.
- Download the completed Employee Declaration Form and share it with the employee through email or post.
- Upload confirmation from the employee, ensuring that the Employee Declaration Form is correct. That must be confirmed with a physical or digital signature or an email from the employee confirming the information is correct.
- Upload all ‘Required’ documents and ‘Optional’ documents.
- Review the declaration in the ‘Application summary’ and then ‘Apply.’
- Coordinate with your employer in getting the form submitted.
- Share the necessary documents and provide the signature.
- If you have not received any response after all the forms have been submitted, follow up with the employer or on the website.
Receive Expert Redundancy Advice Kildare Today
Being laid off can be extremely difficult, not just financially but emotionally. Give yourself the time to navigate the emotions properly and assess the situation before planning the next move. The best option during such situations is to get a professional redundancy consultation from Money Maximising Advisors Limited and get a proper understanding of your redundancy rights. MMA financial consultants are always ready to help you navigate your financial situation with confidence and ease. Pick up your phone and know your redundancy rights today!
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