Ulster Bank Redundancy Offers

H

hardtimes09

Registered User
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Hi everyone,

Bit of advice needed please. My Brother-in-law has worked in Ulster Bank for the last 4 years, he is 29 and single, living in rented accomadation has a small car loan but no other debts. If he takes the package offered he will receive about 26,000 Euro. He was in college a number of years ago and has a diploma in business, he has also completed a number of banking exams while with Ulster Bank....not sure of details.

He is unsure of what to do and we have all been giving him differing advice. He would like to return to college for a year and get his degree but in this economic climate that will not guarentee him a job!

He is worried that if he doesn't take this offer that its only a matter of time before he is made redundant anyway and will only get statutary redundancy which will only be worth about 5,000.

Any advice would be welcomed.
 
Stay in his job - that would be my advice in a nutshell.
 
hardtimes09 said:
He is worried that if he doesn't take this offer that its only a matter of time before he is made redundant anyway and will only get statutary redundancy which will only be worth about 5,000.
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It is hard to know but the UB are doing a fair bit of pruning now. I would see how many older members of staff will take the redundancy which in the future could give him more security. Looking forward I really do not think the UB will pull out of Ireland.
 
hardtimes09 said:
Hi everyone,

He is worried that if he doesn't take this offer that its only a matter of time before he is made redundant anyway and will only get statutary redundancy which will only be worth about 5,000.
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IMHO it is unlikely that this scenario will arise unless the bank collapses. He should not take redundancy because he thinks that that he will get less money in a year or two.

From an education perspective, he is in a fortunate position with few financial commitments. I would tend to agree that there would be no guarantee of a job in a year with a degree as there will still be lots of financial sector workers looking for jobs. If he were to go back to college, he should consider finishing the degree and doing a postgraduate course. He should only go down this path if he actually wants to go back to full time education. He should also look at the option of staying in the job and finishing the degree part time to improve future prospects.

Unlike the union officials, I believe that the redundancy offer will be over-subscribed in UB/ FA.
 
Why does he think he'll be made redundant on statutory terms?, I don't think any bank in Ireland has ever done that and I can't see the IBOA taking it easily
 
Back in 1970 just after a 6 month bank strike all of the banks recruited lots of new staff. 40 years on these people are due to retire. I would imagine there will be plenty of late fifty something year olds biting at the bit to take an early retirement package.

RBS have made a mess of things. They are really getting rid of First Active to save on costs but also taking the opportunity to cull a few heads in Ulster Bank. Those left behind will be so terrified of losing their jobs that they will jump when their master shouts. Personally I think that many employers are using the R word to cull their staff and those left behind will have to "double up".

I would not take the package unless he hates his job and has a dream to follow elsewhere. It is only speculation to say that he will only get statutory redundancy if there is another round of job cuts. Probably a rumour put out by HR in order to frighten people in to taking the current package.

I have worked in banking all my life and I have seen it all. I would not listen to the IBOA either. All mouth in my opinion and very little else.
 
Thanks for your honest replies everyone. I feel he should stick it out and finish his degree at night....however the last 6 months or so he has begun to hate his job, I know its not easy to stay somewhere you hate but as I'm over 10 years older than him with mortgage, credit unuin loans, credit cards, kids etc I think I can see things a bit clearer than him...or not?
 
He hates his job? Does he have any ideas of what he'd really like to do? With no dependants he's got an opportunity to use the money in a positive way to affect a career change into something he'd enjoy. He could top-up his Diploma to a Level 8 degree by getting some credits for previous study and maybe getting some voluntary experience/work shadowing etc in his new chosen career path. How would he feel in 3 years time being in a job he hates, apart from content that he has a job. He's the right age to affect a change, if he really wants to he needs to sit down and have a good think and maybe get some guidance.
 
What salary is he on at the moment?

The €26k will be mostly tax-free.

He will get UB for the next 9 months if he can't find another job.

Combined it must represent most of a year's net salary.

Alternatively, he can return to college.

Does he hate his job or career?

If it's his career, this is a great opportunity to have a generous employer fund his efforts to try another one.

He should grab it with both hands before they withdraw the offer. They may need to let more people go, but the terms might not be as generous.

Brendan
 
Again thanks guys, a lot of differing ideas. He is on about 35,000 at the moment, I never thought of him claiming UB...I think the pros are looking better than the cons at the moment! I'll keep you posted as to what he decides.
 
He'd be mad not take it.
€26k primarily tax free will keep him going for a while.

If he is planning to take on more education then now may be a good time to do in that hopefully when he finishes the job scene may be better.
(May be worse too of course)

If he is single and 29 and doesn't like his job then take it with both hands open.
Besides - it's not like there are no jobs out there.

What area specifically does he work in?
Presumably he will have plenty of time to source a job if he wants to.

Even if he gets a job paying less the so what.

it will be a good change of scene.
 
Please correct me if I'm wrong but I don't think 26k for a person with 4 years service will be as completely tax free as perhaps might be implied here. Revenue says

http://www.revenue.ie/en/tax/it/leaflets/it21.html#section2

The basic exemption is €10,160 plus €765 for each full year of service with the employer making the redundancy payment.

Perhaps someone else can confirm more accurately what the tax implications are, maybe if you get it early in the tax year before you've earned much it, that might help.

I'm under the impression that the tax free limit has been fairly static for several years.
 
Assuming he has not claimed before he will get an increased exemption of 20,160 + 765 for each year of service, so it is effectively tax free.

The voluntary redundancy will not affect his JB. If he is studying, he won't qualify for JB as he is not available for work.
 
I would take some time off and then set up a debt collection agency. I have a friend
who runs such a business in the U.K. She has special tracing software, she is busier than she has ever been, with 12 people employed.
 
If he really hates the job its a great chance to retrain in something else. Personally I'd take the money and travel.
 
Well put it this way - if he's not prepared to leave a job when he is offered 26k tax free into his hand then when is he prepared to leave it.

Baaically - if he doesn't take it he is basically saying he's gonan stay there for life !
 
Brendan said:
Assuming he has not claimed before he will get an increased exemption of 20,160 + 765 for each year of service, so it is effectively tax free.

The voluntary redundancy will not affect his JB. If he is studying, he won't qualify for JB as he is not available for work.
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what if he studies part-time or by distance education ?
 
Hi

I'm in a bit of a pickle & so confused about my redundancy entitlements. BE WARNED IT'S GOING TO BE A LONG POST AS I'VE SO MANY FACTORS TO TAKE INTO ACCOUNT!!

I've been with Ulster Bank for 3 years now. I've just went to part time hours of 3 days per week from Oct 08. I had a baby last year & was considering not returning to work but did so on the part time basis.

I would love to take the redundancy but only if I thought I could get something part time even in a shop because my husband has recently been let go from his job in construction so he is receiving UB, he hates been idle & has been actively seeking work in any shape or form but to no avail.

I'm also unsure about the amount of redundancy I'll receive. Most of my redundancy should be based on my full time salary for 2.5 years of €36k & 0.5 years at partime salary of €22k but within those two years I took maternity leave & the unpaid element of mat leave. I'm also not sure if I'd qualify for the grant for children if my child is only a baby.

To top it all off I'm expecting Baby No2 in June so not sure if I took the redundancy package if it would affect my maternity benefit..........Really don't know what to do!
 
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