When you are newly unemployed there are a number of things that you need to find information about:
What is redundancy?
Redundancy occurs when you lose your job at the instigation of the employer, due to circumstances such as, but not limited to, the closure of the business or a reduction in the stafing levels. There are many reasons for reductions and closures of businesses such as trading slumps, downsizing or even reorganisation of the staffing structures within a company.
Information provided by citizensinformation.ie
If you are being let go from your job in Ireland you must be given a P45 and you may have certain entitlements including notice and pay for annual leave earned but not taken.
When you leave your job your employer must give you a P45 (See here if you are not given a P45). This is a statement of your pay and the tax and PRSI to date deducted by your employer. It is a very important document and you need it if:
- You are starting a new job – to give to your new employer in order to avoid paying emergency tax
- You are unemployed – to claim a tax refund, to claim social welfare benefits
Dismissal and redundancy
If you lose your job you may have been made redundant or you may have been dismissed. If it is a redundancy situation you may qualify for a redundancy payment. You can find out how your redundancy payment is taxed here.
PRSI and Tax
When you lose your job you should register as unemployed with your local social welfare office even if you do not qualify for an unemployment payment. You may be able to sign on for credited PRSI contributions so that you do not have a break in your social insurance record.
You may be entitled to a tax refund if you have been out of work for some time.
Social welfare and other benefits
You may be entitled to an unemployment social welfare payment. If you have enough social insurance contributions you may be entitled to Jobseeker’s Benefit. If you do not have enough PRSI contributions you may qualify for Jobseeker’s Allowance which is a means-tested benefit. Depending on your circumstances you may qualify a medical card and other secondary benefits such as Rent or Mortgage Interest supplement under the Supplementary Welfare Allowance Scheme.
Information provided by citizensinformation.ie
You are entitled to a statutory redundancy payment if you are over 16 years of age with a minimum of 104 continuous weeks reckonable service. this reckonable service is counted after you have turned 18 ( so the actual minimum age is 18! You should verify this with social welfare if you are in doubt and affected)
You must be a full time employee who is paying Class A PRSI.
There are a few points to note;
Apprentices qualify for redundancy unless they were dismissed within one month after the end of their apprenticeship.
Agency employees are the responsibility of the agency contracting them out.
The following do not constitute breaks in service; Maternity leave, adoptive leave, parental leave, carers leave, illness, agreed holidays, layoff, stirke, lock out,transfer of the business to a new owner or the return to work after an unfair dismissals process. Breaks in service do not exist if you are remployed within 4 weeks by an associate company or if you are dismissed prior to the elapse of 104 weeks and then reemployed with 26 weeksof the dismissal by the same company.
information at citizensinformation.ie
How do I calculate the amount I am entitled to?
Statutory redundancy is set out as 2 weeks pay for every year of service with that company over the age of 16, plus one weeks pay.
Pay is the current normal weekly pay you have and includes regular overtime payments and benefits in kind.
The statutory element of a redundancy payment is tax free. it is also limited to €600 per week for calculation purposes.
Some employers may offer additional payment to the statutory payments. These additions are taxable.
information at citizensinformation.ie
What is "Reckonable Service"?
Reckonable Service is that time in employment which is used to calculate your entitlements. it includes the following :
Period in work
Holidays
Sick leave, maternity, adoptive,parental and carers absences
Career breaks agreed with your employer
Lock outs and periods covered by unfair dismissals judgements
NOT INCLUDED is period over 52 consecutive weeks of absence caused by injury while at work.
NOT INCLUDED is period over 26 consecutive weeks of absence caused by illness.
NOT INCLUDED are periods of Strike.
NOT INCLUDED are periods of lay off.
information on citizensinformation.ie
If tax has been deducted from your pay since 1 January last and you are now unemployed you may be entitled to a tax refund. If you have not paid any tax, you cannot claim a refund on becoming unemployed.
If you are entitled to a tax refund the amount of the refund will depend on:
- The length of time you have been unemployed
- The amount of tax you have paid
- The amount of tax credits utilised by you.
When do I apply for a refund?
- Minimum of 4 weeks from the date you became unemployed .
- If however you are in receipt of any taxable sources of income (which would include taxable income from the Department of Social, Community and Family Affairs) you should wait a minimum of 8 weeks.
- If emergency tax was deducted by your former employer, you may apply immediately for a refund on becoming unemployed.
Complete a form P50 and return to your district tax office.
Information and form available on Revenue.ie
When you become unemployed your first , and usually largest fear, will be who is going to pay the mortgage or rent.
The most important thing is to discuss any difficulties with your providers and alert them to the steps you are taking.
The Dept. of Social Welfare make provisions for some assistance for rent and mortgage intereset relief.
In broad terms "Rent Supplement" is paid to people living in private rented accommodation who cannot provide for the cost of their accommodation from their own resources. In general, if your only income is a social welfare or Health Services Executive (HSE) payment, you will qualify for a rent supplement from your local Health Office. your entitlement is calculated by the Community Welfare officer and in general will be targeted at ensuring your income doesn't fall below a certain level.
RENT SUPPLEMENT details are provided on welfare.ie
Mortgage Interest Supplement provides short term support to help you pay your mortgage interest repayments. You will only get assistance with the interest portion of your mortgage repayments. You will not get help with the portion that pays off the actual loan and house insurance. You should contact your lender to discuss repaying the actual loan.
MORTGAGE INTEREST SUPPLEMENT details are provided on welfare.ie
If you feel you would benefit from financial advice there are numerous options available to you. Your bank manager may be able to provide assistance. A search of the golden pages will provide many examples of professionals offering financial advice.
Alternatively the Citizens Information Board provide a service on a free to use basis. The Money Advice and Budgeting service is a joint venture with teh Credit Unions of Ireland.
More information is available at citizensinformation.ie
Retraining is a benefit to any jobseekers when it appearson your C.V. during a period of unemployment. there are many options available and the key to what type of retraining you undertake may depend on the affordability of the courses.
FAS provide details of retraining options available through that agency on this webpage.
Starting a business is an option open to many individuals who find themselves out of work. Any prospective new business formations will require advice and assistance.
Enterprise Ireland provide information and professional assistance for new enterprises.
"Starting a Business in Ireland: A How To Guide" is a guide published through the Department of Enterprise, Trade and Employment.