Your expert guide to redundancy packages in wake of Cardinal Health Tullamore job losses

The Offaly and 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 packages, after tax, clear to hand?

These are just some of the questions that will enter workers' minds over the coming months as the final packages become clear.  

A leading redundancy and qualified Financial Advisor has warned of the possible outcomes this week. 

John Morrin, QFA of Galway Firm Q Financial Advisors, explains that there are four key considerations in examining any redundancy package.

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) .

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.

A Further Ex Gratia payment can be made at the discretion of the employer, in addition to the payments above. This payment 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, 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 the 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 need 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. 

EXAMPLE: 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,” explained John Morrin QFA with 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.

PHOTO: The Pensions and Redundancy Team at Q Financial

The message from Q Financial to Cardinal Health workers 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.”

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