The recent announcement of Cardinal Health’s closure in Tullamore, Co Offaly, affecting 315 employees, highlights the importance of being prepared for potential redundancy situations.

If you find yourself facing redundancy, it is crucial to understand the value of your package and how to evaluate the best outcome for your financial future.

redundancy advice ireland

Understanding Your Take-Home Redundancy Package

When assessing your redundancy package, it’s essential to consider the following items:

  1. Statutory Redundancy: In Ireland, statutory redundancy is calculated as two weeks’ pay for every year of service, plus one additional week, subject to a maximum weekly wage of €600. This payment is tax-free.
  2. Ex-Gratia Payments: Any additional payments above the statutory minimum may be subject to taxation. However, there are tax-free exemptions available: Basic Exemption, Increased Exemption, Standard Capital Superannuation Benefit (SCSB).
  3. Pension Implications: Consider how your redundancy payment might affect your pension entitlements. You have a lifetime limit of €200,000 tax-free for redundancy payments and another €200,000 for pension lump sums.

Evaluating the Best Outcome

To make the most of your redundancy situation:

  1. Calculate Your Entitlements: Talk to the Q Financial team and we will calculate your entitlements. Redundancy calculator Ireland.
  2. Seek Professional Advice: Consult with a financial advisor to understand the tax implications and how to structure your package most efficiently. Get started.
  3. Consider Your Long-Term Financial Goals: Weigh the benefits of taking a larger lump sum now against preserving your pension entitlements for the future.
  4. Negotiate Wisely: If there’s room for negotiation, focus on aspects that could enhance your package, such as extended health insurance coverage or outplacement services.
  5. Plan for the Future: Use this opportunity to reassess your career goals and consider up-skilling or retraining options that might be available.

Remember, while redundancy can be a challenging experience, it can also present opportunities for career growth and financial planning. By understanding your entitlements and carefully evaluating your options, you can make informed decisions that support your long-term financial wellbeing.