THE EUROPEAN ASSOCIATION OF RESEARCH MANAGERS AND ADMINISTRATORS
Redundancy Payments to Staff employed on FP7 research contracts
Hello,
Staff recruited to work on research projects accrue an entitlement to redundancy payment for the time they worked on the project whether or not they actually become redundant at the end of the project. This final figure will vary, depending on length of service etc. but a fraction of the entitlement they ultimately get will be based on their time on the project.
At the moment, such payments are excluded (Financial Guide) and must be born by the host. However, these costs are;
Any thoughts?
Staff recruited to work on research projects accrue an entitlement to redundancy payment for the time they worked on the project whether or not they actually become redundant at the end of the project. This final figure will vary, depending on length of service etc. but a fraction of the entitlement they ultimately get will be based on their time on the project.
At the moment, such payments are excluded (Financial Guide) and must be born by the host. However, these costs are;
- Readily identifiable
- Necessary
- Justified
- Economic
- Incurred within the period of the project (they may be paid at a later date, but they are incurred during the project).
- Labour taxes such as social insurance are already allowed and are similar in form to the redundancy payment just paid out earlier.
- VAT is normally not recoverable except where no alternative mechanism exists to recover it. In Ireland up to 60% of redundancy payments are recoverable from the exchequer so only the remaining portion needs to be covered by the project.
Any thoughts?
Views: 86
Replies to This Discussion
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Permalink Reply by Dr Oonagh Kinsman on -
This is advice given to me
Treasurer’s office response
The problem is that not every researcher is paid redundancy, some leave of their own accord, some become full time members of staff, some won't stay the requisite 2 years etc. so without knowing that this charge will definitely crystallize as an actual cost to the College then any provision made each month couldn't be termed a 'real' cost. The Commission might accept a month accrual if in every situation it was incurred it would become a legally enforceable cost to the College but I think in the absence of this any such charge would be deemed ineligible.
Actual redundancy costs are eligible if incurred during the life of the grant and to the extent that they were accrued by the employee working on the grant.
Staff Office response
Insofar as it is possible, we seek the redundancy payment from the Research Grant from which the researcher is being made redundant. This, of course, becomes complicated when a researcher has moved from grant to grant, and earlier grants have terminated and been closed. So the College does end up picking up redundancy costs either in those circumstances, or in the circumstance in which the grant expressly excludes any such payment. Provided that sufficient notice of redundancy is given, however, 60% of the redundancy payment is recoverable from the Irish State, which mitigates the loss to the College and/or the research grant to some extent. And it is important to note that the College only pays Statutory Redundancy (= 2 weeks of pay for each year of service + 1 weeks pay) -
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Permalink Reply by John Donovan on -
Oonagh,
Thanks for this it does clarify it somewhat. TCD seem to be absorbing the cost and reclaiming the 60% from the Department of Social Protection. -
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