Key Post: Redundancy for Contractors from own company

Hi

I am currently a contractor and director of my own limited company. I am the only employee.
I have been contracting full tim for the last 3 years.
I am noe thinking about becoming a pernament employee for another company. Can I take redundancy from my own company. What are the additional quirks I should know about.

Thanks in advance

same boat

I am in the same situation. Any help would be appreciated!!

Re: same boat

Hi there,

I would doubt very much if a company director could avail of the Redundancy Payments Scheme to pay himself redundancy on the closure of his own company. The biggest problem with this would be the fact that it isn't really a redundancy situation - what is happening is that you are deciding not to work for the company any longer. The crux is that you are both employee and employer, if you know what I mean.

The CIDB database includes a guide to The Redundancy Payments Scheme 1967 to 1991 published by the Dept Of Enterprise, Trade and Employment, at this link [broken link removed]

On your wider query, you should make sure that your company's affairs are dealt with properly if you are thinking of winding it up or ceasing to trade. The Companies Office will strongly enforce the new compliance provisions in cases where they feel that companies and directors have failed to comply with their legal obligations. If you are moving on in your career, the last thing you need is hassle and expense (let alone a possible prosecution) down the road.


Regards
Tommy

www.mcgibney.com

Redundancy

There was another discussion on a topic similar to this one a while ago - part of it related the circumstances required on order for termination of employment to be considered redundancy by the Revenue in order to avail of any redundancy related benefits/reliefs. Unfortunately I can't find the topic in question but I don't think that these circumstances were clarified in the end. Some people were of the opinion that termination could be declared redundancy on some sort of ad-hoc basis which I doubted very much.

Marlborough Recruitment

I thought I read somewhere that the directors of Marlborough Recruitment company were able to pay themselves a redundancy payment?

Re: Marlborough Recruitment

Dunno about that - maybe

(1) it was taxed as salary

or

(2) some of them were'nt proprietary directors and maybe were paying full employee and employer PRSI on their salaries?

Re: Marlborough Recruitment

bump