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Voluntary redundancy
3 Answers
Our factory is closing at the end of the year - they have offered us a voluntary redunandacy package (worth about 2 years wages) but want to know within the next 4 weeks if i will take it - my job position wont be there by the end of the year although they want me to stay til the end and decomission the factory.
My problem is - if i take the package it will be volunatary redundacy and i wont be able to claim on my Mortgage Payment Protection Insurance or will I ? - the insurance is worth about 3.5k over a year.
They will not guarantee if I dont accept it the redunandacy payment at the end of the year will be the same.
So d i accept it or not - any useful advice please ?
Will I also be able to claim benefits ?
My problem is - if i take the package it will be volunatary redundacy and i wont be able to claim on my Mortgage Payment Protection Insurance or will I ? - the insurance is worth about 3.5k over a year.
They will not guarantee if I dont accept it the redunandacy payment at the end of the year will be the same.
So d i accept it or not - any useful advice please ?
Will I also be able to claim benefits ?
Answers
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Most payment protection insurance only kicks in after 3 months (of being unemployed) and then only pays out for a year.
You are in a very difficult position, if employment prospects were better � I would definitely advise you to take the money & run. You would have 2 years to find a job and then be no worse off.
I was in a similar position around 10 years ago, I took over 2.5 years worth of money and walked straight into a better paid job (I doubt very much that I could do that now). Remember that redundancy up to around �35k is tax free, you will only pay tax on any pay in lieu of notice.
Your problem is that if you hold on until the end of your employment, you might end up leaving with virtually nothing.
To qualify for the payment protection insurance, you will have to have been made compulsorily redundant. This could result in you receiving a redundancy payout of one weeks� pay for every year served (capped at a value of around �300/week) � hardly worth having.
You are in a very difficult position, if employment prospects were better � I would definitely advise you to take the money & run. You would have 2 years to find a job and then be no worse off.
I was in a similar position around 10 years ago, I took over 2.5 years worth of money and walked straight into a better paid job (I doubt very much that I could do that now). Remember that redundancy up to around �35k is tax free, you will only pay tax on any pay in lieu of notice.
Your problem is that if you hold on until the end of your employment, you might end up leaving with virtually nothing.
To qualify for the payment protection insurance, you will have to have been made compulsorily redundant. This could result in you receiving a redundancy payout of one weeks� pay for every year served (capped at a value of around �300/week) � hardly worth having.
Just showed my hubby your post, we both agree you would be daft not to take the voluntary redundancy!
You probably wouldn't get the mortgage protection, but whats 3.5k per year compared with 2 years wages?
As Hymie pointed out, if you recieved compulsory redundancy, your payout could be extremely low, put it this way, my husband was made redundant a few years ago, he recieved the paltry sum of �4000, and he had worked for the company for 16 years!
You probably wouldn't get the mortgage protection, but whats 3.5k per year compared with 2 years wages?
As Hymie pointed out, if you recieved compulsory redundancy, your payout could be extremely low, put it this way, my husband was made redundant a few years ago, he recieved the paltry sum of �4000, and he had worked for the company for 16 years!
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