Voluntary Redundancy - what would you do ???

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Crazychick

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Just wondering what the general consensus is to this:

DH has been offered a voluntary redundancy package which would pay off our remaining mortage (if we chose to do this) or we could live off it for the next 3 years while he seeks another job.

He would not be entitled to any Social Welfare benefits.

I work part-time and we have 3 young children.

We would always chose job security over any offer of a package but the company is in a perilous position and the chance of compulsory redundancies in the next year or so is a real possibility. Obviously statutory redundancy would be a fraction of the package being offered now.

We don't know whether he should jump ship now or hang on in the hope the company can bring itself back from the brink. In the current climate (with jobs so hard to come by) our dilemma seems impossible.

I would really appreciate any advice/comments to help us decide.
 
Could you provide some more details, how much does he earn and how much is the redundancy offer?

It depends on what kind of salary he is giving up. It is likely his next job will pay less.

Without knowing the company it is a good chance that it will struggle for another year or two and might need to have pay cuts. Its just the way the economy is, there is no obvious signs of growth or reasons to expect a major upturn.
 
Firstly not sure why he would not be entitled to Social Welfare, the fact that he took VR in itself is not a reason for not getting SW, albeit it may delay when you actually get anything. Possibly if you post more details on that, some experts on here regarding SW may be able to advise you

If the company goes bust, he'll only get statutory.

Why not look at this from another perspective. If he did take VR, would it give him the opportunity to do something he always wanted to do? Radically change his career or take a less responsible job. After all to maintain your standard of living, he wouldn't need to earn as much as you would not be paying mortgage payments.

Would it give you an option to return to work full time and for him to stay at home and mind the kids?
 
He earns 39K per annum, the offer is 100K, so after tax on annual salary we reckon it would last us 3 years if we didn't pay off the mortgage.

This is his dream job hence the terrible decision. We know he won't get an equivalent job again but he would take any job to earn a living (he's a worker) even if it means a lesser salary. There is no chance of me getting fulltime at the moment but if it came up he would have no prooblem staying at home changing nappies for a few years :D

Apparantly he wouldn't get SW because the job is a former semi state company and he doesn't pay full PRSI .... I'm not sure if thats true but thats what he was told.
 
Thats a very good redundancy offer and I can see why its a tough choice.

Part of the 100k redundancy is taxable isn't it?

I would be inclined to take it and get another job. 39k is a good salary but there is a good chance of getting that type of salary again. If he was letting go 70k+ salary for example it would be a tougher choice again.
 
Lots of things to consider I think. Are you happy in the house you are in and is it for life? If so taking the VR might be an idea pay off half the mortgage and keep the other half to live off/rainy day until further work comes in. your still leaving yourselves with 18 months equivalent to pay.
Compare it to what he would get if the company does go under and what he would get in SR payment.
What portion of what you earn would cover living expenses?
Would there be a possibility that if the company turns around in say 12/18/24 months that he might get a job there again?
If he is hard worker and willing to get out and get stuck in at something I would jump at it.
 
Thanks for replies so far. We don't plan to move house we are happy enough here. My earnings cover food bill/visa/misc, dh's salary pays mortgage and all utility bills, so it will be a big loss. It is a good offer,
no question, but if he had the choice he'd chose his job any day.
 
Forgot to add, yes part of that 100K would be taxable, but he would get some of that tax back after a year, I believe.
 
So on the positive side you could get 90k+ net and you might just get a new job after a few weeks on about the same money. You could even get one for more than 39k. Easy decision if it was mine to make. I'd go for it.
 
You should contact your local social welfare office and confirm the position regarding social welfare entitlements

It could be worth trying to calculate how much you would take home after tax from the VR package.
 
Thanks Welfarite, just read it now and it said a person may not qualify for JS benefit having left a job voluntarily, makes sense really. All he could do is apply at the time and see what happens.
 
My neighbour took voluntary redundancy from a large multi national and she was entitled to SW after a 9 week period. I think there might be a difference in leaving a job voluntarily and taking voluntarily redundancy as in if some people didn't take the latter it would to a company to instigate compulsory redundancy.
 
That's good to know, never thought of it that way. I suppose we won't know for sure until he applies.
 
niceoneted said:
My neighbour took voluntary redundancy from a large multi national and she was entitled to SW after a 9 week period. I think there might be a difference in leaving a job voluntarily and taking voluntarily redundancy as in if some people didn't take the latter it would to a company to instigate compulsory redundancy.
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in addition, a lot of companies will simply state that you were made redundant, and not mention voluntary on any of the paperwork. There is a fundamental difference between resigning and taking a VR package
 
Took VL about 18 months ago hoped to get an alternative job but still no luck. Also not entitled to SW and money running out. Live in a semi-rural area and time is long and the social interaction of a job is missing. Think carefully about all aspects of this decision.
 
kbie said:
Took VL about 18 months ago hoped to get an alternative job but still no luck. Also not entitled to SW and money running out. Live in a semi-rural area and time is long and the social interaction of a job is missing. Think carefully about all aspects of this decision.
Click to expand...
Can you explain more as to why youw eren't entitled to SW? Not qualified for JB? What about JA? Not qualified because of means?
 
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