ChatterBank2 mins ago
Voluntary redunandacy
2 Answers
Our company factory is closing at the end of the year - they have offered us a voluntary redunandacy package (worth about 2 years wages) but want to know within the next 4 weeks if i will take it - my job position wont be there by the end of the year although they want me to stay til the end and decomission the factory.
My problem is - if i take the package it will be volunatary redundacy and i wont be able to claim on my Mortgage Payment Protection Insurance or will I ? - the insurance is worth about 3.5k over a year.
They will not guarantee if I dont accept it the redunandacy payment at the end of the year will be the same.
So d i accept it or not - any useful advice please ?
Will I also be able to claim benefits ?
My problem is - if i take the package it will be volunatary redundacy and i wont be able to claim on my Mortgage Payment Protection Insurance or will I ? - the insurance is worth about 3.5k over a year.
They will not guarantee if I dont accept it the redunandacy payment at the end of the year will be the same.
So d i accept it or not - any useful advice please ?
Will I also be able to claim benefits ?
Answers
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you will have to check the terms and conditions of your policy to find out for sure - or ring them and ask them.
As to benefits, you wont be able to get any means tested ones, after all you will have means! redundancy pay is to compensate you for not being able to earn, as are benefits, so i would imagine you will have to use up the redundancy pay first Plus, looking on the bright side you could easily find another job and not need to apply at all. Yu will probably be able to get contributios based jsa for up to 6 months if you have paid enough NI
As to benefits, you wont be able to get any means tested ones, after all you will have means! redundancy pay is to compensate you for not being able to earn, as are benefits, so i would imagine you will have to use up the redundancy pay first Plus, looking on the bright side you could easily find another job and not need to apply at all. Yu will probably be able to get contributios based jsa for up to 6 months if you have paid enough NI
There are many who would see this as an opportunity, not a problem. You would seem to be being offered 9 months notice to find another job and over �50k in redundancy.
A rare opportunity indeed these days.
The answer to your somewhat trifling question about mortgage protection policy is to look at the small print but I'm very sure that you will discover that such situations are not covered. The reason should be obvious - the insurance policy is to cover the risk of some nasty event happening. Risk implies a probability of something happening. Probability doesn't apply here - it is a dead cert that you will not be employed by this company come December.
It's a damn good offer you are being made.
Just bear in mind that unless the company structures your dismissal such that you work out your notice period before leaving, you will not be able to claim contribution-based JSA until the end of the notice period expires.
Also that redundancy payments in excess of �30k are taxable at your marginal rate (the bit over �30k is taxable). There are ways around this - consider paying the excess into pension perhaps.
A rare opportunity indeed these days.
The answer to your somewhat trifling question about mortgage protection policy is to look at the small print but I'm very sure that you will discover that such situations are not covered. The reason should be obvious - the insurance policy is to cover the risk of some nasty event happening. Risk implies a probability of something happening. Probability doesn't apply here - it is a dead cert that you will not be employed by this company come December.
It's a damn good offer you are being made.
Just bear in mind that unless the company structures your dismissal such that you work out your notice period before leaving, you will not be able to claim contribution-based JSA until the end of the notice period expires.
Also that redundancy payments in excess of �30k are taxable at your marginal rate (the bit over �30k is taxable). There are ways around this - consider paying the excess into pension perhaps.
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