Termination payment - returning to same employer

[Scouser]

Hi there,

What are the implications of an employee receiving a tax free termination payment and then comming back to work for the same employer 1 year later. Are there any laws around this? The employee has worked for another compnay in the mean time. Can he be re-hired?

X.

 

[DB74]

Yes there is no problem with this.

AFAIK, an employee who has been made redundant cannot be re-employed by the same company for at least one month following redundancy (as per phone call to Revenue recently)

IMO there is a gaping loophole here but that is what Revenue told me anyway

 

[Scouser]

Thanks,

Isnt a Termination payment different than redundancy though?

X.

 

[DB74]

What exactly is a "tax-free termination payment" then?

I'm not aware of any other tax-free payments made payable to an employee on cessation of an employment other than redundancy

 

[Scouser]

Its SCSB that im talking about, but i suppose it is redundancy.

X.

 

[DB74]

SCSB is merely a method of calculating how much of somebody's ex-gratia (amount over and above statutory) redundancy lump-sum will be tax-free so it is a redundancy situation.