Can this be treated as redundancy?

D

Donnie16

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My husband was working a maternity cover contract for a company from April 2015 up to Dec 2015. He got transferred to a full time role with a company in the same group from Dec 2015. He was on a probation period of six months.

There was not enough work ( contracts not materialised), so he was told his job was gone. He has been paid up until end of April.

Can this be treated as a redundancy payment? The pay has come through for March and April today and fully taxed, in fact he got less than he would have if it was paid separately in March and April as more fell into the higher bracket.
 
you are required to have worked for 2 years with a company to be entitled to redundancy so your husband is not entitled to it.
 
He was paid to end April so that is called Pay in Lieu of Notice (PILON)
It can be covered under the normal termination payments tax exemptions as long as it was not a specific term of his contract that he would be paid for such notice period.

The fact that he is not entitled to statutory redundancy is not relevant. It can still be treated as an ex-gratia termination payment as long as not contracted for.

He can make a reclaim to Revenue, another poster here did something similar for PILON and got his refund although with a bit of difficulty
 
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He is only entitled to one weeks notice so the month could not qualify.
 
Thanks all, he was given the notice back at end of February. He didn't have a two month notice in contract. Nothing in contract re PILON either.

We may try Revenue, would be worth a try for sure.
 
The reason he paid more tax is that he was paid the whole lot in March and was only given the March tax credit. As long as he doesn't work in April he will either get a refund when he starts again this year (from his new employere vis a vis tax credits) or can fill in a P50 form if he feels he will not be working till year end.
 
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