Redundancy in kind
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OPERATORS faced with making redundancy payments need not necessarily do so in cash. It is possible with the employee's co-operations to make the payment in kind.
A spokesman for the Department of Employment told CM this week that "provided an employee agreed voluntarily and in writing to accept payment other than in cash, then the redundancy fund is not concerned."
This means that a redundant driver can be offered his vehicle in lieu of payment. The transaction would require to be drawn up legally with the employee discharging his employer from any further financial responsibilities. The spokesman added that the employee could not be pressurised into accepting the vehicle against his will.
In an industry where the vehicle would become redundant when the driver became redundant this "kind instead of cash" arrangement could be appealing. In such an arrangement the employer is entitled to make a claim for a 50 per cent rebate of the calculated redundancy.