Voluntary redundancy
If you've been offered voluntary redundancy, you might want to stop working. Having a lump sum payment might be tempting, but it's worth weighing it up against the skills and experience you may lose.
Redundancy pay is not treated as taxable income by the Income Tax department (you should include your letter of redundancy with your tax return).
Early retirement
If you're offered early retirement and you retire before you're old enough to receive a state pension, your pension may eventually be smaller than if you had carried on working.
Likewise, if you pay into a company or personal pension, your pension fund may be smaller.
Taking your pension early at 63
Opting out of contributions at 60
Insolvency payments
If your employer becomes insolvent and you have not been given sufficient notice, you may be able to claim an insolvency payment. Employment, Social Security and Housing will be able to tell you more about this.
Salary, bonuses and changes in work arrangements
If employers are trying to cut costs, they may decide not to replace people who leave, not to pay discretionary bonuses or to freeze salaries.
Some employers find creative ways to keep their workforce intact by asking employees to work a shorter week, job share, work flexibly or even take a pay cut. If your employer suggests different arrangements, consider whether this means a change in your contract. You should be fully consulted and any reasons for change explained and discussed.
JACS (Jersey Advisory and Conciliation Service) website
Benefits
You may qualify for Income Support, a benefit to help households whose income is not enough to cover their basic needs.
Every adult in the household is expected to be in full-time paid work or be exempt from full-time work.
The amount of Income Support you receive depends on income, savings, and personal circumstances. Special one-off payments are also available to help you pay for essential items.
Income Support
Social Security contributions
If you lose your job, Employment, Social Security and Housing may be able to help you with credits against your Social Security contribution record to safeguard your pension and other benefits.
If you're a woman who married before 1 April 2001, a widow, widower or retired person over 60, you may be eligible to choose not to pay contributions.
Payment of contributions
Debt
If you’re worried about your finances, the Citizen’s Advice Bureau offers a self-help debt pack which includes advice, eg:
- taking control of debt as soon as you can
- checking you're getting all the benefits and allowances you're entitled to
- getting a clear picture of your income and expenditure
- prioritising and negotiating payments
- looking at the options available to you
If you decide to contact CAB for help and advice, make sure you have accurate information about:
- how much debt you have
- who the money is owed to,
- realistic assessment of your income and expenditure
- how you’ve communicated with those who you owe money
Debt pack on the Jersey Citizen's Advice Bureau website
Termination and redundancy payments
All termination and redundancy payments are now taxable, subject to a £50,000 cap.
Tax on termination and redundancy payments
Bankruptcy (désastre)
You can read the below guidance on the bankruptcy law.
gov.je