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Should I return

I was made redundant in April 2025 after fourteen and a half years service. I was paid my redundancy plus three months extra salary. If I choose to return to the same company, will I have to pay back my redundancy or extra three months salary?

Comments

  • Return the redundancy payments? No, unless there's something to this effect in any agreement between you and your ex-company (which would be very unusual).

    What you do have to be careful of is any redundancy payments that were made tax-free. 

    Any return to the same employer could be seen as tax evasion, but there are specific rules around this that I'm not up-to-date on.

    Someone here will know.
  • Brie
    Brie Posts: 15,444 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I've never seen a redundancy agreement where pay back of redundancy money isn't required if someone returns to the same employer within a certain period of time.  There has always been something about this in the redundancy paperwork I have received from different companies.  Generally there's a sliding scale about how much.  So nothing to be paid back if it's more than a year, 50% if it's after 6 months etc.  

    Frankly I think that only your employer can tell you how they will handle this.  And depending how much they want you they may be willing to negotiate with you.

    As for the 3 months extra salary - I'd check if that was in lieu of notice or garden leave or something.  If it was taxed then I think you would have less to worry about.  
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  • Uriziel
    Uriziel Posts: 200 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    I don't see the problem from a tax point of view since you have permanently lost this redundancy pay. If they get rid of you in a years time for example you would no longer get this same amount tax free so how exactly can it be tax evasion?
  • My ex-employer has already said to me that I can return after 6 months (their rules).
    I wouldn't have to repay.

    Was only made redundant in August and now have a contract to April.
    I'll make that decision next year.
  • katejo
    katejo Posts: 4,307 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My workplace has just offered voluntary redundancy to everyone. One of the conditions is that we would not be able to work for the same employer (permanent or just casual hours) for 2 full years. If we did return, we would have to repay some of the VR money..
  • chrisbur
    chrisbur Posts: 4,270 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    One thing about tax/redundancy that might affect you is that the 30000 tax free element of redundancy pay is per employer.  If at some point in the future you were made redundant again if the two redundancy payments added together were over 30000 it would be capped at that.  
    For example 
    First redundancy paid 20000 all tax free
    Second redundancy paid 15000 only 10000 would be tax free.  
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