Unpaid Leave Vs Temporary Redundancy

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WhatToDo

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My employer has recently asked me to take 2 months unpaid leave from work. The alternative is possible redundancy.

If it is 2 months unpaid leave:
- can I claim Jobseekers Benefit?
- will the 2 month break count in my time of service if I am subsequently made redundant?

If it is temporary redundancy:
- can I claim Jobseekers Benefit?
- will my time of service be reset back to zero, or will it just be a 2 month gap in years of service?

Are there any other implications that I haven't mentioned of one versus the other that I should know about?
 
WhatToDo said:
My employer has recently asked me to take 2 months unpaid leave from work. The alternative is possible redundancy.

If it is 2 months unpaid leave:
- can I claim Jobseekers Benefit?
- will the 2 month break count in my time of service if I am subsequently made redundant?

If it is temporary redundancy:
- can I claim Jobseekers Benefit?
- will my time of service be reset back to zero, or will it just be a 2 month gap in years of service?

Are there any other implications that I haven't mentioned of one versus the other that I should know about?
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Not sure about the benefits side of things, but it won't constitute a break in service for redundancy purposes. It will also be calculable for the redundancy payment. (Career breaks that are authorised by the employer count as time worked.)

I'm not sure exactly what you mean by 'temporary' redundancy. You're either made redundant or you are not.
 
Bill Struth said:
I'm not sure exactly what you mean by 'temporary' redundancy. You're either made redundant or you are not.
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Thanks for the reply Bill.

As I understand it, if you get an RP9 form from your employer then you are being made temporarily redundant, if you get RP50 you are being made permanently redundant?

But if I come to an agreement with my employer that I will take 2 months unpaid leave in order to save my job, and I get neither an RP9 or RP60, will I be able to claim JB? I will be available for work in those 2 months and I will be seeking work.
 
WhatToDo said:
Thanks for the reply Bill.

As I understand it, if you get an RP9 form from your employer then you are being made temporarily redundant, if you get RP50 you are being made permanently redundant?

But if I come to an agreement with my employer that I will take 2 months unpaid leave in order to save my job, and I get neither an RP9 or RP60, will I be able to claim JB? I will be available for work in those 2 months and I will be seeking work.
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If you get an RP9 it is called temporary lay off. Time on temporary lay off is not calculable for redundancy purposes, but will not break service either. You can seek other employment while on lay off. you may get jobseekers allowance while on lay-off, I don't know about unpaid leave though.
 
Okay, this is all new to me so I'm just getting used to the different terms (unfortunately I can't update the subject name of this thread).

At least it is useful to know the effect of temporary lay off on any future redundancy calculation, i.e. "not calculable for redundancy purposes, but will not break service".

If anybody knows whether or not I may be entitled to Jobseeker's Benefit while on unpaid leave that would be good.
 
Yes, you will get Jobseekers Benefit assuming you meet the other qualifying conditions.

You will be unemployed.
You will be available for work.
You will not have left voluntarily.

For part-time work or unpaid leave, it has to be at the request of the employer.
 
Brendan,

Just to Your points above - what changes if the person takes redundancy voluntarily - is it JA rather than JB?
 
Demps said:
Brendan,

Just to Your points above - what changes if the person takes redundancy voluntarily - is it JA rather than JB?
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Neither. Leaving voluntarily may result in a disqualification of up to nine weeks on either JB or JA
 
Brendan said:
For part-time work or unpaid leave, it has to be at the request of the employer.
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Thanks to all for your help so far... one final question, will I need to get a letter from my employer stating that they have asked me to take the unpaid leave? I assume Social Welfare will need to see some evidence like that?
 
Where an employee was receiving Unemployment Benefit due to being temporarily laid off or being put on short-time due to lack of work for him/her at their place of employment, is there any affect on calculating how much redundancy payment he/she are due?
Yes. If it is a lay-off, all the period of lay-off is non-reckonable for redundancy purposes i.e must be excluded in deciding how many years were served and therefore in calculating how much redundancy is due. Periods of short-time, in contrast, are in fact fully reckonable. As stated already, all of this applies only to a 3 year period ending on the date of termination (for all redundancies notified on or after 10th April, 2005). There is therefore no non-reckonable service prior to this 3 year period.
Check out the DETE Website
I would also advice you talk to you employer you should really get an RP9 off them
 
WhatToDo said:
Thanks to all for your help so far... one final question, will I need to get a letter from my employer stating that they have asked me to take the unpaid leave? I assume Social Welfare will need to see some evidence like that?
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yep, that would be a good idea.
 
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