Careful consideration needed in deciding closing Offaly based firm's redundancy packages

Offaly and the midlands area is still reeling this week from the fall-out from the announcements of redundancies at Cardinal Health in Tullamore from March 2025.

As the shock subsides, current workers at the plant will start to look at their own options. Will they move on to new Job opportunities ? Where and when might these opportunities present themselves ?  and how will their redundancy work ?.

“How much will they be paid if they accept these redundancy package , after tax ,clear to hand” ? 

These are just some of the questions that will enter worker’s minds over the coming months , as the final packages become clear.  A leading Redundancy and Qualified Financial Advisor warned this week. John Morrin, QFA of Galway Firm Q Financial Advisors explains 

There are 4 key considerations in examining any redundancy package;

1. The Minimum Statutory Payment  - This is usually capped at €600 per week multiplied by 2 weeks of service. Eg 15 years  x 30 weeks x €600 = €18,000. ( This Statutory payment is paid nett without deduction of PAYE/PRSI) .

2. A PILON (Payment of lieu of Notice) should be paid according to 

the notice period stated in the contract of employment. This will attract the normal level of PAYE,PRSI and USC.

3. A Further Ex Gratia Payment can be made at the discretion of the Employer , in addition to the payments above. This payment , which might be another entitlement for a period of weeks per year at the ordinary rate of pay. This Ex Gratia payment is  as such taxable  as such ,but the tax payable may be different for every employee, depending on years of Service etc. There may be Basic or Enhanced redundancy Tax  exemption available, depending on  Rate of Pay and the amount of tax free lump sum available in a pension member’s pension ,in the Company Pension scheme.

Don’t Make a rash decision on  your Redundancy Options.

According to Q Financial  “ This Ex Gratia Payment ,is the area on which  individual Employees need the most Advice. The precise advice and Calculations, needs to be given by a regulated Financial Advisor who has the entire earnings history and the accrued worker’s pension benefits available for the calculation. EG; Some long serving workers may be able to have the entire payment exempted from Taxation, under the provisions of The Redundancy Act, by Waiving their right to a Tax Free Lump Sum in their pension later,  but is this wise ?

What is the cost of this higher payment now on your pension income in later Life ?.

“ It's not just a case of looking at the highest figure on the page and accepting this straight away.”

Says John Morrin OF Q Financial Advisors. It will depend on the Tax Free Lump sum available from your pension, your age and you should know the Lifetime implications of this decision.

Free Consultation.

The message from Q Financial to Cardinal Health workers this week, is quite clearly

 “Approach Cautiously and get the Regulated Independent Advice you need for your individual situation as everybody’s nett outcome will be different.”

OMA financial Services Ltd  T/ A Q Financial Advisors are  available for a Free Consultation without obligation on 091-421900 or log on to  WWW.Qfinancial.ie/q-redundancy   to make an appointment.

Q financial.ie, based at The Courtyard ,Claregalway Shopping Centre, Co Galway are regulated by  the Central Bank Of Ireland. Reg No. C135240