My workplace has just undergone a massive restructure. Pretty much everyone was offered redeployment into a similar role or a redundancy. Would you accept a payout of $30K? In these uncertain times, is it a good time to look for other work?!! In Human Resources..
Redundancy or Stay?
tetress on 22/06/2020 - 23:07
Comments
age?, kids?, cash in reserves? current wage? city? tenure?
if you do take redundancy ask for it in the next financial year, least the leave notice and annual leave will be under the tax threshold if you don't get another job.
if i had a years wage in the bank and was confident i'd get another job, i'd take it.
id love the down voter to discuss their thoughts
Yeah, you shouldn't be allowed to neg unless you leave a comment. Might slow the pile-on idiots down a bit.
Now I feel entitled to neg you because why not.
No backsies.
You realise that with redundancies, the annual leave is taxed at 32% anyway? Notice and redundancy/severance pay is tax free up to the threshold as well.
AFAIK and dare say your are wrong.
Annual leave may well be taxed at 32.5% but you pay the marginal rate once you do your tax return. so if you got paid out on July 1st 10k of annual leave (had $3250 taken out) and then never worked again, you would get that tax back. If you got paid on June 30th you have likely already earned a lot that year i.e. your full salary and would be paying > 33%
So let me ask are you better off getting paid out on June 30th or July 1st? especially if you had a shit tonne of LSL and AL up your sleeve, i.e. 4 months and thought of having 6 months off. You would have shit for brains if you didn't.
https://www.afr.com/wealth/survivors-guide-to-redundancy-201…
"Some employers may give individuals the option of accepting the actual redundancy payout in the current financial year or delaying it until the next financial year when taxable income may be lower, he adds."
I'm not talking about tax returns because I'm not a registered tax agent but I've been in payroll for over 8 years so I know what I'm talking about.
@aligind4h0us3: for someone in payroll you're still quite clueless.
What you are referring to is the system withholding rate on the pay out of annual leave.
A withholding rate doesn't necessarily mean all of that will be taxed - hence why we do a tax return.
As above marginal rate of income tax will be applied depending on your taxable income for that year.@dasher86: You have no right to say I'm clueless when I'm not a registered tax accountant (and I doubt you are one too). I know how tax is treated from a payment perspective. I didn't once announce that I could provide advice for someone submitting their tax return and knowing how it would be treated.
@aligind4h0us3: okay, i apologise. you might not be entirely clueless but when someone provides misleading / incorrect advice and then backs it up with i know what i'm talking about because i have been doing something for so long…
that does necessarily mean they know what they are doing; it could just as well mean they've being doing it wrong for that long
irritates me :/@aligind4h0us3: annual leave and LSL is income, it may have 32.5% taken out at the time, buts adjusted when you do your tax return.
@aligind4h0us3: so why are you down voting for the initial idea to move to the next financial year and then slagging me off with gibberish saying \
"You realise that with redundancies, the annual leave is taxed at 32% anyway"when this is clear crap and false.
annual leave is taxed at your marginal rate in the end
@aligind4h0us3: Whenever I hear the good old "I've been doing this for X amount of years" at work, it's usually followed up with, "You've been doing it for that long and you still can't get it right".
@aligind4h0us3: you clearly don't, it has everything to do with tax returns, its income, what planet are you on
payroll may tax at %X at the time, but the amount of tax you pay is based on what you earn in the tax year.
i got made redundant 5 years ago after 8 years service, and had it paid July 4th. Got 13 or 17 weeks from memory plus LSL plus annual leave, and didnt work the next year, got the lion share of tax paid back when i lodged the following year.
@Donaldhump: I wouldn't be openly saying you've been in payroll for x amount of years, every payroll officer I've dealt with in my different companies I've worked for are clueless and a simple task they can't figure out. And I'm not the only one that thinks that!
Voluntary redundancy payments are not tax free, part or all of genuine redundancy payments is. This is just one of the differences. With voluntary, a concessional tax rate is applied to the termination payment.
how long can you survive off 30k?
How likely are you to find work in that time?
What's the worst that can happen if you don't?
Another question would be how much you like the work place? If you really like it there then $30k is not enough to leave IMO. If on the other hand you have been wanting out any way it's the perfect opportunity to go. If you decide to go try and secure your next job straight away as $30k does not buy you a huge amount of time. If you get that job quick it's a win win win situation.
Would you accept a payout of $30K?
So many variables. Impossible to answer.
flip a coin and give an answer
.Heads
Impossible!
You should already know this being HR but there's a huge difference in tax between a voluntary and genuine redundancy so make sure you work that out. Personally I don't think it's a great time to be looking for work and $30k isn't a lot after tax and depending on your debts etc.
There is no way we can answer this question without understanding your personal circumstances. For all we know you have a debt of $50k due tomorrow and have $0 in savings. Give us more information if you want an informed answer.
do you work at one of the Big 4 consultancy firms? i heard they had huge cuts across the board in the last few weeks
Link?
Deloitte, it's been all over the news for the past few days.
not just Deloitte, E&Y, PWC and KPMG
No, keep the new job. Without know anything else about you (except a post years ago where you wanted to buy a home with no deposit) it’s hard to advise but $30k is not a lot of money.
Stay with the new position, a year of work is more than the redundancy.Unless you are 60 years old, then I would take it and retire.
Put some resumes out on Seek and see if any bites honestly first
stay in the job for now. make your current employer redundant once you have secured another job.
There's a lot of variables that make up this decision for you - we're not aware of them all. But where is redeployment? Is it in the same office or elsewhere?
Eg. my mum opted for redundancy but did consider redeployment. However, redeployment included moving the entire workforce to Geelong from Melbourne CBD, about 1.5 hours drive away on freeway on a good day such that redundancy was the easier but not preferred option.
Would you accept a payout of $30K?
Yes. No. Maybe.
yes no. maybe.
i dont know
can you repeat the question ?
You're not the boss of me!
In my experience, it takes 3-6 months to find a new permanent job, but quicker for contract roles and if you have an inside contact. I would think about how you feel about your role and company, and if you are going to be staying for much longer. If you don't see yourself growing in the role/company, and can survive off the package with risk you might not find a job for 6 months, take the money and run. Ofcourse take into consideration your current family and financial situation, probably not a good idea to be made redundant if you are refinancing or need a loan over the next 12 months. Banks are getting pretty diligent with their loan checking. All the best!
It depends on your personal circumstances and your life goals and whether you enjoy the role where you are.
In 2007 I was offered redundancy from Qantas after 17.5 years service. From a financial perspective it was 1 years pay and my wife had a well paid, secure job so money wasn't an issue. I had transferable skills and I was only 46. I wasn't enjoying my job. I took the money and ran. I was under-employed for 8 months (had some contract work) and earnt about 1/3 my usual income but it was fun work. Eventually I got into my current employer.
In 2017 (or 2018?) I was offered redundancy again. It was 1 years pay (again) but circumstances had changed. I was 56, recently divorced, living with my sister and knew I'd have difficulty finding another similar position so I said no.
Fast Forward to now and it appears another restructure is about to happen. I'm about to turn 59, own an apartment and I'll be the first in line to sign the release form.
SO how comfortable do you feel about getting another job? What's your professional network like?
I hate threads like this not - essentially help me make a big life decision but ill give you NO INFO on my current situation or who the decision may impact me
Here is my advice dont take the 30k because you seem somewhat stupid and if these people are willing to give you a job then you should hold onto that for dear life.
😂😂