# Ltd. Company Director - Am I Entitled to Redundancy?



## Newera (17 Jan 2015)

Hi folks,

I'm hoping that you may be able to help me. I am currently a director of a contract services Ltd company but will be closing the company via voluntary strike off. Others that I know of have availed of redundancy in similar situations but I want to be sure that this is allowable. 

IT21, the revenue guidance on redundancy payments, specifically mentions directors as well as regular employees within the scope of the document and I believe that there has been legal precedent that someone employed like myself, has the same entitlements as a normal PAYE employee. 

I would be grateful if those knowledgeable in the specifics of this area would advise.

Thanks very much.


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## DB74 (17 Jan 2015)

Proprietory directors (those who would be classed as PRSI Class S) are not entitled to statutory redundancy


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## Joe_90 (17 Jan 2015)

Compensation for loss of office:
http://www.revenue.ie/en/tax/it/leaflets/it21.html#section3

So the question would be can you get compensation for loss of office when you are the one sacking yourself.  I've seen it where a director sells the shares and loses it position as a result but I've not seen it where the loss is a result of the company being struck off as the office does not cease until strike off.


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## Newera (17 Jan 2015)

Thanks very much for the replies ..... What is meant by class s and where is it stated that due to being a class s director, that you cannot avail of redundancy from the company of which you are a director?


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## Joe_90 (17 Jan 2015)

The other directors could give you a redundancy package.  None of it could be claimed back from the state because you pay Class S PRSI most employee pay Class A.

It problem is that you won't get the exemption from tax that applies to statutory redundancy.

The other 3 option apply to a termination payment or "redundancy"


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## Newera (17 Jan 2015)

Thanks Joe90, so do you mean that I could not get €10,160 plus €765 per year served, tax free due to being class s?


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