Made redundant prior to start date

M

moo

Guest
Hello all....
A few months ago myself and my girlfreind who were living in London decided to move back to Dublin. It took a while but we managed to get jobs, luckily enough within a day of each other so we packed up and shipped over... My girlfreind started work on Monday and I was due to commence this Monday coming. All was going well, it was all go and our new life was looking to be coming together... jobs being the prequisites to mortgages etc..

I got a phonecall off the CEO yesterday saying that investment funding had fallen through and thus my position was being withdrwan, i.e. sorry but you job is gone, three days before I was due to commence and after moving home for it!

I understood at the time that the company was a 4 year out startup and that a funding round was in the due dilegence stage for September but it was made clear that this is pretty much in the bag, so I wasn't concerned..

So I'm now back to square one and uterly surprised/shocked that the management did not see this coming...

So a few questions or requests for advice;
The CEO has offered me 2.5 times my months salary as compensation.
Can I legally request more... he has said that he'd like to give me double that but he doesn't have the money... it seems decent that at least he's offering it, but I have moved home for this job, I even purchased a car the other day as I needed it to get there... I took me almost 6 months to get this job so if it takes this long again, God!!
And most importantly - Will I have to pay tax on this..
 
I think alot of people would envy you right now. You've made the move, now you've got the fear. Get a job or move back home. Alot of people find themselves in the worse situation of having the fear of moving. Stick to your plans and you will eventually ge there. Persistence is the key to success. You are better off than you think.
 
Take the money and put it down to experience. At least you are getting something - you haven't even worked a day there - a similar thing happened to me - slightly different situation except I had worked in the place a month and got nothing at all !

I know it's a bummer but you were moving back to Dublin anyhow weren't you? The money should give you a bit of breathing space to look for something else.
 
moo said:
And most importantly - Will I have to pay tax on this..
Click to expand...

I think it depends on the exact nature of the payment. Is it salary in lieu of notice ? Is such a payment mentioned in your contract ?

Is it just an ex gratia payment (probably fully taxable via self assessment)

You should probably ring the revenue and ask
 
Hi Moo

Bummer on losing the job but at least you're back in Ireland - stay positive!

On the tax issue - I'd imagine that you are entitled to 7 months worth of tax credits in Ireland at this stage so, depending on the size of the salary, you should pay little or no tax (just a guess)

Good luck with the job hunt

Dicey
 
Thanks to all for your positive contributions...
It's the approach I'm going for myself.... I am back home and fingers crossed all will work out...

In regards to the payment the CEO said that he'll see if he can get it to me in a way that would avoid tax, but as said on the thread at this time of the tax year, perhaps I won't have to pay that much..

I'll give the tax man a ring and report the findings..

Many nice ones to all
 
Hi all
Just rang the revenue.....
My ex gratia payment will be taxed as follows;

X Amount taxed @ 20% - Tax credits accumulated on date of payment.
Works out to not be as bad as expected..
Phew...
 
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