# voluntary vs compulsory redundancy



## narky (19 May 2011)

Hi all,

The company I work(ed) for went bust last week and we were told on Friday that it was closing down that day!  I know we have been doing very badly in there and there is no money.  We were all paid up to last friday but no notice pay.  We were told we can just apply for voluntary redundancy or can go through the procedure of looking for compulsory redundancy.  We are all very confused.  We were also given at risk letters saying our jobs are at risk but in fairness they are well and truly gone with liquidators being called in.  

Our boss is telling us that there is no money for notice pay and that the liquidators will give it.  He is also saying that with voluntary redundancy there is no difference to the compulsory except we might get it quicker.  But citizens info said that you are not going to get notice pay if you go down the voluntary redundancy route.  

Please can someone shed some light.  We were only a small company with no hr dept and approx 20 staff.  We got all our advice from a hr company that we paid a fee to and they seem to think we will all get the notice pay even if going voluntary.  I do not want to do myself out of a months pay.  I've been there 7 years

thanks in advance


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## Mpsox (19 May 2011)

I can't comment on the notice pay issue but you may have subsequent issues with any social welfare entitlements if your redundancy is deemed to be voluntary and not compulsory. I'm sure someone else on here with more knowledge of the SW system then me can clarify that.


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## narky (19 May 2011)

I understand where you're coming from about issues with social welfare.  I should have been clearer.  We have all received a letter of lay off.


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## Ildánach (19 May 2011)

If you have been made redundant you are entitled to notice pay.  If you apply for voluntary redundancy you are *not *entitled to notice pay.

It sounds like your employer is making you redundant, but claiming it is temporary lay off.  There is a procedure where the employer can lay employees off, and after 4 weeks of this, they can apply for voluntary redundancy unless the employer offers them 13 weeks employment again.

A lot of employers are trying this at the minute to get out of making notice payments.  

You are under no obligation to accept lay off.  If you refuse to accept the lay off, then he can make you redundant, but he will have to pay notice pay in those circumstances.  YOu can take him to court if he refuses to pay, or report him to the National Employment Rights Authority  1890 808090

If he does not have the money to make the payment, you can apply to the Social Insurance Fund for the notice pay.  [broken link removed]


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## Ildánach (19 May 2011)

Mpsox said:


> I can't comment on the notice pay issue but you may have subsequent issues with any social welfare entitlements if your redundancy is deemed to be voluntary and not compulsory. I'm sure someone else on here with more knowledge of the SW system then me can clarify that.



This is not the case.  There is no disqualification from Jobseekers payments for taking voluntary redundancy, unless the payment is in excess of 50,000 (and the same disqualifications apply to compulsary redundancies over this amount too)


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## narky (19 May 2011)

thanks so much for your reply.  The hr company are definitely wrong so stating that there would be no difference between vol and comp redundancy.  They were saying it was because there was no money in the accounts


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## Ildánach (19 May 2011)

If your employer needs free help with this (rather than relying on a misinformed HR company), they can contact the National Employment Rights Authority for information 1890 808090 or the Irish National Organisation of the Unemployed 01 856 0088  both of whom provide information on redundancy to employers, employees and/or trade union reps


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