The scheme was opened in April of this year with a closing date of May 23rd for those who apply for voluntary redundancy. It is envisaged that those who are approved for voluntary redundancy under the scheme would leave this year.

Employees who have 2 years of continuous service at the organisation up to their proposed leaving date are eligible to apply for the scheme, with payments capped at €300,000.

Director General Kevin Bathurst has defended the relatively high cap as necessary to encourage higher earning staff to take the package.

RTE workers with between two and five years of service will receive four weeks of pay per year of service.

Those with five to ten years of service will receive five weeks of pay per year, and employees working with RTÉ for more than ten years will get six weeks’ pay for every year of service.

The voluntary redundancy payments will be based on an employee’s salary on leaving and they will not qualify for any further redundancy.

In an email to RTE staff, Director General Kevin Bathurst expressed that any future voluntary redundancy scheme will be less generous than the Voluntary Exit Programme approved this year.

Mr Bakhurst also expressed that applications will be approved “only where a robust business case is made, and it is confirmed that the role can be suppressed or that equivalent savings can be made by suppressing an alternative post and/or redeploying an employee into that role”.

The Voluntary Exit Programme is not open to senior management at RTE.

Where an organisation wishes to downsize their workforce or wishes to restructure the organisation, they may ask employees to consider applying for voluntary redundancy before they take the step of compulsory redundancy.

Non compulsory redundancy may take the form of voluntary redundancy or early retirement.

An employer who wants to reduce the number of employees working for the company may ask employees to apply for voluntary redundancy.

There must be a fair and transparent process whereby employees are selected for voluntary redundancy. There may also be criteria attached to eligibility, as in the case of RTE’s senior management, where certain types of employees may not be included.

It is important to note that you are not automatically entitled to voluntary redundancy if you apply and you may not be selected. You are also not obliged to accept the voluntary redundancy package offered.

Often an employer will offer incentives and an attractive severance package to encourage employees to apply for voluntary redundancy.

Voluntary redundancy may suit an employee who wishes to make a change, especially senior or long serving employees, and provides a financial safety net to facilitate searching for a new job, or upskilling or further education.

Employees may be incentivised to consider early retirement as an alternative to redundancy and may be allowed to receive some pension payments earlier than normal if they retire early.

If you take earlier retirement, before the age of 65 or 66, you may be entitled to a Jobseeker’s payment or even a social welfare Back to Education payment, depending on your circumstances.

If you are not in receipt of a social welfare payment, you may be able to sign on for credits or make voluntary social insurance contributions in order to qualify for a Contributory State pension at age 66.

On taking voluntary redundancy, you will be entitled to your statutory redundancy payment, usually, with an additional or ex gratia voluntary redundancy payment.

Statutory redundancy pay is based on your final salary, and you will be entitled to two weeks’ pay per year of employment, plus an additional week’s pay. This is capped at a maximum of €600 per week, or €31,200 annually. 

In order to qualify for statutory redundancy you must be over 16, and have worked for your employer in insurable employment for at least two years.

A statutory redundancy payment is tax free and an additional ex gratia voluntary redundancy payment may benefit from certain tax reliefs, although it will likely not be fully tax free.

If you receive payment in lieu of notice this may be treated differently for tax purposes. It is important to get tax advice before accepting any voluntary redundancy offer.

If you are considering taking voluntary redundancy or early retirement it is essential to evaluate your personal finances and seek expert advice on tax and your pension entitlements as they may be affected.

Voluntary redundancy remuneration packages are also usually individual to each employee and based on final salary and length of employment. It is important to seek expert advice on the severance package you are offered to evaluate your employer’s redundancy offer.

If you find yourself in a voluntary redundancy situation, it is important to understand your options and entitlements before making this big decision. There are many factors to consider to ensure that this is the right step for you to take.

National Pensions Helpline has the information you need and can advise you on all aspects of redundancy. 

Start our assessment and our redundancy advisors can assess your voluntary redundancy offer. You can also receive a free case evaluation, including the tax and pensions impact of your voluntary redundancy offer, from our vetted panel of redundancy advisors.