Repayment of Ex Gratia sum on rehire

R

Ryan

Registered User
Messages
238
I was made redundant a few months agofrom a job/company I was happy in and saw a long term future for myself there.

There was a clause in the termination agreement I had to sign that if you are rehired within a year yiu have to repay the Ex Gratia portion of your Severance package,
Is this usually enforced in reality? I would like to go back but I have been living on the money the last few months and don’t have it all to give back
 
I would negotiate during the rehiring process for that clause to be waived. It seems ridiculous to have it in there in the first place. They can consider it payment for the months they made you unemployed and for breaking your continuous years of service.
 
A clawback clause in a compromise or severance agreement is a private contract between the employer and employee. The employer has full legal discretion to waive or negotiate that condition during the rehiring process.

However, where this could get tricky is that under Revenue rules, ex-gratia redundancy payments enjoy valuable tax-free exemptions (such as the Basic Exemption, Increased Exemption, or SCSB) only if the redundancy is bona fide - i.e., meaning a genuine termination of employment without a pre-arranged return. If Revenue views the sequence of events as an arrangement to extract tax-free cash rather than a genuine, unforeseen rehiring, the employee could face a substantial tax bill on the ex-gratia lump sum.
 
I’m interested in an openly advertised role so don’t see Revenue having a case. They took 7k tax from my severance payment anyway.

@Annieindublin if you mean how the severance package compares, it’s about 9 months after tax salary I came out with
 
You must log in or register to reply here.
Back
Top