Get the most out of your redundancy.
At Elevate Financial Planning, we understand that redundancy is a difficult and challenging experience for individuals, and we’re here to provide support and guidance during this time. Whether you’ve recently been made redundant or are concerned about the potential of redundancy, we’re committed to helping you navigate this process with confidence and ease.
With our team of experienced advisors, we provide tailored financial advice and support to ensure you make informed decisions that align with your personal goals and objectives. Our aim is to provide you with peace of mind and a clear path forward during this transition period.
What is Redundancy?
Redundancy is a term used to describe the situation when an individual’s employment is terminated due to reasons outside of their control, such as company restructuring, downsizing or closure.
In such cases, the employee may be entitled to receive redundancy pay, which is a lump sum payment made by the employer to compensate for the loss of their job.
Understanding redundancy and its potential impact on personal finances is important for individuals to make informed decisions and plan for the future. While redundancy can be a stressful and worrying time, the team at Elevate Financial is on hand to support you with clear and straightforward advice as well as provide you with reassurance at the same time.
Our Process
At Elevate Financial, we put our clients’ needs first. That’s why we offer tailored support and advice to help individuals navigate this difficult time. Our team of experienced advisors works closely with clients to assess their financial situation and provide guidance on managing their finances during the transition period. We offer a range of services, including reviewing redundancy pay entitlements and creating a personalised financial plan to ensure clients have the necessary resources to meet their financial goals.
Our goal is to provide individuals with the support they need to move forward with confidence and security.
Frequently Asked Questions
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What redundancy payments am i entitled to and how much will I get?
Your entitlement to redundancy payments depends on various factors, such as your length of service, age, and the terms of your employment contract. Our financial advisors can help you review your entitlements and understand your options.
Statutory Redundancy
The statutory redundancy payment is a lump sum based on your pay and length of service. If you are eligible for redundancy pay, you are entitled to:
- Two weeks’ pay for every year of service
- One additional week’s pay
The maximum weekly amount used to calculate redundancy pay is €600 a week (or €31,200 a year), even if your pay is more per week.
You can use this redundancy calculator to estimate how much statutory redundancy pay you might be entitled to.
Ex Gratia Payments
Your employer is not legally obliged to pay anything on top of the normal statutory entitlements, that is, notice and statutory redundancy.
Your employer may want to give you a voluntary top-up payment on the basis that this is the industry norm.
You may have a contractual right to a top-up payment if this is stated in your contract of employment, a collective agreement or from the custom and practice of their employer.
*Source www.CitizensInformation.ie
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How do I know if I have a right to redundancy pay?
To be eligible for a statutory redundancy payment, you must:
- Be over 16
- Be in employment that is fully insurable under the Social Welfare Acts
- Have at least 2 years’ continuous employment (104 weeks) with the same employer over the age of 16
- Have been made redundant (dismissed from your job).
- You must have been dismissed from your job
To show you were dismissed, your employment must have been terminated (with or without notice)
There will also be a dismissal if you have ended your contract of employment because you were forced to leave your job because of your employer’s conduct. This is known as constructive dismissal.
*Source www.CitizensInformation.ie
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Do I pay tax on my statutory redundancy payment?
The statutory redundancy payment is tax-free. If you get a lump sum as compensation for losing your job, part of it may be tax-free.
More information on whether elements of the payment, such as pay in lieu of notice, is taxable is available on the Revenue website.
*Source www.CitizensInformation.ie
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What happens to my pension if I've been made redundant
Those who have had their contracts of employment terminated and have been made redundant should be provided with leaving service options by their scheme administrator.
At this point, the team at Elevate Financial will be on hand to guide you through your most appropriate options and identify your financial future post-redundancy.
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How can I plan for the future after redundancy?
Redundancy can be a time of uncertainty, but it’s also an opportunity to reassess your career goals and financial priorities. Our advisors can help you create a financial plan that reflects your changing circumstances and helps you achieve your long-term goals.
