Is a redundancy lump sum payment taxable?
A statutory redundancy lump sum, which under the law must be paid, is entirely tax-free. Only a payment above and beyond the statutory payment (an ex-gratia payment) is taxable –and only when it goes over a certain limit. For information on this, contact the Telephone Information Office of the Revenue Commissioners at 1890 60 50 90.

What is the situation regarding workers on what is called “fixed-purpose” contracts?
The Redundancy Payments Act 2003 safeguards the right to redundancy of a worker employed under a “fixed-purpose” contract i.e. where the exact duration of the contract was incapable of being determined at the beginning. If the contract is not renewed following the fulfilling of the purpose, with the fixed-purpose contract therefore ceasing, a redundancy situation can arise. There is already provision under Section 9(1)(b) of the Redundancy Payments Act, 1967 regarding fixed-term contracts under which a redundancy situation exists where a fixed-term of employment expires without being renewed under the same or a similar contract.

What is the position regarding the redundancy rights of Part-Time Workers?
The Redundancy Payments Act 2003 has secured the rights of part-time workers to a statutory redundancy payment through amending insurability requirements for redundancy to bring them into line with the Social Welfare Acts and the Protection of Employees (Part-Time Work) Act 2001. This is in line with the provision of the 2001 Act that part-time employees cannot be treated in a less favourable manner than comparable full-time employees in relation to conditions of employment. In particular, there is recognition for the rights of workers to statutory redundancy in the following cases – (a) casual employment, (b) subsidiary employment (where a person depends on another employment for his/her livelihood) and (c) employment of inconsiderable extent i.e. very low wage.

Mairead Griffin, Career Coach & Outplacement Specialist, Career Mentors -

Phone 01-2160880 Email mairead@careermentors.ie

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Is a redundancy lump sum payment payment taxable?

A statutory redundancy lump sum, which under the law must be paid, is entirely tax-free. Only a payment above and beyond the statutory payment (an ex-gratia payment) is taxable –and only when it goes over a certain limit. For information on this, contact the Telephone Information Office of the Revenue Commissioners at 1890 60 50 90.

What is the position regarding the redundancy rights of Part-Time Workers?

The Redundancy Payments Act 2003 has secured the rights of part-time workers to a statutory redundancy payment through amending insurability requirements for redundancy to bring them into line with the Social Welfare Acts and the Protection of Employees (Part-Time Work) Act 2001. This is in line with the provision of the 2001 Act that part-time employees cannot be treated in a less favourable manner than comparable full-time employees in relation to conditions of employment. In particular, there is recognition for the rights of workers to statutory redundancy in the following cases – (a) casual employment, (b) subsidiary employment (where a person depends on another employment for his/her livelihood) and (c) employment of inconsiderable extent i.e. very low wage.

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It’s Monday…….us Irish can’t wait to go to work!!

Recently HRM Recruitment Group and TOP People completed a survey of 695 office support employees including PA’s, Receptionists, Secretaries, Administrators, Accounts Staff and Customer Service staff. It has highlighted that they completely understand the challenges employers face and are ready to get behind their organisations at a time of great need.

94% are happy to take on extra responsibility outside their current job description

82% of candidates will work longer hours to ensure all tasks are completed.

78% would be willing to take a reduction in pay

The survey indicates that a much greater proportion of candidates (69%) will now look at temporary or contract opportunities compared with (54%) this time last year. Good news for employers too in that it implies a higher quality temporary office worker now being available to organisations.

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The most important thing is that you’re open and honest with your bank before you get to the point of financial despair. It is critical that you protect your future credit rating as much as possible. You should speak to your lender before your bills mount up!! Before approaching your bank read the Irish Mortgage Federations Code of Practice on Mortgage Arrears on the www.ibf.ie website. Ensure you have all the facts and entitlements in advance of meeting your bank

Option 1
Request a payment holiday whereby you will not have to make any repayments of capital or interest. This is what you should ask for first.

Option 2
Ask to be moved to interest only until you are back on your financial feet

Option 3
The Mortgage Interest Supplement. provides short term support to help you pay your mortgage interest repayments. You will only get assistance with the interest portion of your mortgage repayments. You will not get help with the portion that pays off the actual loan and house insurance. You should contact your lender to discuss repaying the actual loan.

To get Mortgage Interest Supplement you must meet the following conditions:

•When you began your mortgage, you could afford the repayments
•Your house is not up for sale
•The amount of your mortgage interest payable does not exceed an amount the Health Service Executive considers reasonable to meet your residential and other needs

See here for further conditions…..

What is the process?

To apply, fill in a Mortgage Interest Supplement Form . Part of the form will need to be filled in by your lending agency. You will also need to fill in another form called the Supplementary Welfare Allowance Form – this form is used to gather additional details relevant to your application for Mortgage Interest Supplement.  When you apply for Mortgage Interest Supplement the Community Welfare Officer will assess your means. You may qualify for a Rent Supplement if you live in private rented accommodation and are unable to meet the cost of your rent. You must be in receipt of either a Social Welfare payment or Supplementary Welfare Allowance (SWA) payment in order to receive this Supplement.

Some of the most common reasons that people do not qualify for a rent supplement are:
•The rent is too high
•Your income is too high
•One member of the household is working full-time (over 30 hours per week or more)

Rent/Mortgage Interest Supplement Means Test

Taking up part-time employment can effect your Rent/Mortgage supplement. Income is assessed in the following way:

The first €75 of ‘additional household income’ is disregarded.
Additional household income over €75 is disregarded at 25% of its value. There is no upper limit on the amount that can be disregarded.

EXAMPLE – SINGLE PERSON ON JOBSEEKERS ALLOWANCE & NO OTHER INCOME

Single Rate Jobseeker’s Allowance €204
Basic SWA rate for a single person – €204
Additional income above Basic SWA rate €0.00
Private Rented Accommodation per week €115
Minus minimum personal contribution (person pays) – €24
Maximum Rent Supplement payable per week (HSE) €91
Minus additional income above Basic SWA rate – €0

Rent Supplement payable (HSE) €91 per week

For Further Information go to www.inou.ie or www.welfare.ie

http://www.careermentors.ie

                                      COPING WITH REDUNDANCY

1. Allow time to grieve the loss

It is helpful to acknowledge how you feel, notice the feelings it brings up and
to accept yourself for the feelings you do have.

2. Dont take it personally

It was you ROLE that was made redundant

3. Dont buy into negative thoughts

When you notice you are having negative thoughts, do your best to let them go rather than allow yourself to get carried away with them.

4. Keep active

keeping your body moving keeps your energy high, your blood circulating and blocks you from falling into apathy

5. Think about what you actually want to do in your future

this is the one time in your life where you have the perfect opportunity to think about what you really want in life. Sit down with a piece of paper and list your strengths, passions, weaknesses and aspirations.

6.Get proactive and start looking so you are ready when the right thing comes up

7. Let everyone know that you are looking.

‘It’s not what you know it’s who you know’ – having the right contacts can get you everywhere. You can dramatically increase your chances of landing the ideal job by getting clear about what you want and getting out and letting the all your friends & ex colleagues know.Most employers are sourcing people by word of mouth. They dont invest in agencies anymore as the funds arent there!

8. Start working on your CV and interviewing skills so you are ready when the right thing comes up

9. Focus on your good points

It’s easy when you have lost your job to get caught up in your weaknesses and failings but refuse to do
so. Focus every single day on your assets, your strengths, accomplishments, experiences, what difference you can make to any job role.

10. Get Support from those around you

whatever you do reach out
and allow others to help you help yourself. This could actually turn out to be the best thing that had even happened to you, if you allow it.

11. Make use of the Outplacement Service your ex-employer has provided for you. Quite often transitioning employees do not even accept the service. Get help from an expert

Outplacement Services Industry. Over the past five to 10 years, the outplacement industry has experienced the effects of “belt-tightening” by many companies. Shifting financial priorities for such companies coupled with commoditization within the outplacement industry seemingly have brought forth this period of economization.
Are tides changing? Consider the statistics from the recent research study The Value of Outplacement:

The number of individuals receiving outplacement support has increased by 50% over the past two years
More than 50% of employers surveyed, reported that outplacement support had been offered for at least 85% of those separated from the organization
Approximately 50% of employers surveyed utilize exclusively external outplacement providers

81% of employers surveyed utilize some help from external outplacement providers
Why are companies providing outplacement support?

Beyond minimizing potential litigation from displaced employees, more and more companies are crediting outplacement with a wide array of other benefits. The Value of Outplacement study reported:
65% of employers believe that providing outplacement improves staff morale, motivation and productivity
78% of employers felt the provision of outplacement could improve the organisation’s reputation
55% of employers believed outplacement could help it to be seen as an employer of choice
Another 2003 study of over 1,200 HR executives in North America found:
78% believe that outplacement consulting and career transition services improve the organizations’ image, both internally and externally
72% said outplacement and career transition services help reduce litigation

Is outplacement linked to retention?

Beyond improving staff morale, motivation and productivity, many employers further credit outplacement with increased employee retention. At first glance, this statement seems contradictory . . . how can services for terminated employees actually affect the “survivors?” Consider the following from The Value of Outplacement study:
55% of employers agreed that providing employment support for staff no longer needed, helped the organization retain those staff deemed necessary
More than 70% of employers believe that offering outplacement helps line managers to shed staff with a clearer conscience, making their jobs easier
87% of those managers interviewed felt that it eased the pressure on them, making their jobs easier.
The 2003 study of over 1,200 HR executives in North America found:
66% said outplacement reduces stress on managers implementing organizational changes, again, making their jobs easier

What are the most valuable components of outplacement?

According to research from the The Value of Outplacement study, the 3 most highly rated components of outplacement support by employers are:

Quality of one-to-one consultancy
Interviews and assessment training

CV/Resume development
And what does the future hold?

The Reed Consulting study reported:

78% of employers surveyed felt the need for outplacement would increase or stay at the current levels for the coming year
22% of employers surveyed felt the need for outplacement would fall in the coming year

Redundancies is a process that nobody ever wants to manage. However, the issue always needs to be addressed rather than ignored and key steps need to be put in place to ensure damage is limited for the displaced employees, the company itself and the remaining employees.

The key stages are:

1. Apply good strategies around change management. Continuely monitor change, market trends, financial status and planning

2. Minimise redundancies but considering alternatives EG reduced working weeks, redeployment, temporary lay offs

3 Select the jobs and not the individuals that will be effected.

4. Communicate the news to the individuals and offer them time to reflect and come back with alternatives to redundancy

5. Identify a outplacement service provider. Many of these people will not be equipped to handle both the emotional and financial turmoil that goes with redundancy. Quite often those who have been made redundant may not have job searched for decades and need up to date support around their curriculum vitaes, how to interview and where to actually go to secure their next role

Mairead Griffin
Owner, Career Mentors