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L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Redundancy: Social Security information for employees

If you've been made redundant or accepted a redundancy package

As soon as you know your leaving date, come into the Social Security Department and our advisers in Ready for Work can offer you guidance and advice on a number of areas, eg:

  • the vacancies and roles available in the current job market
  • support available through the Back to Work programme to help find new employment
  • information about Advance to Work and Advance Plus work placement schemes
  • registering as 'actively seeking work' for Income Support purposes
  • information, support and courses available from Careers Jersey

It is important to understand that accepting a voluntary redundancy payment can affect the contributions you may need to pay and the benefits you will be entitled to. For Social Security purposes, severance or early retirement are classed as voluntary redundancy.

What evidence do I need to produce?

A letter from your previous employer saying that you have been made redundant and the date that you last worked.

Paying Social Security contributions on redundancy payments

Contributions aren't deducted from redundancy payments, but you will still need to pay them on any wages or outstanding holiday pay you get as part of your final pay packet.

If you accept a voluntary redundancy package you'll probably have to maintain your Social Security contributions. To discuss your options you should make an appointment with the Social Security Department.

Unemployment benefit

There is no unemployment benefit in Jersey. However, in the event that you do not find work immediately, having registered with Social Security as 'actively seeking work', you may be entitled to Income Support if you have lived in the Island for five years or more. You may be prevented from claiming some components of Income Support if you left work without a good reason.

Income Support

When claiming Income Support, any wages, holiday pay and payments in lieu of notice will be treated as income. Any separate payments resulting from compulsory redundancy will be treated as capital.

For Income Support purposes, voluntary redundancy payments are treated as earnings, and are applied to your claim at your normal rate of pay.

Income support and giving up work

Under Income Support, taking voluntary redundancy, severance or early retirement is treated as giving up work and a sanction may be applied to your claim. The sanction reduces your claim by £92 (the value of your adult component) for 13 weeks.

If you are under 65, you may be expected to register as a jobseeker, even if you have decided to claim your pension from the age of 60 or 63.

Learn more about claiming Income Support

Being taxed on redundancy payments

All payments you get as a result of the termination of employment are taxable.

Tax on termination and redundancy payments

Pensions

Your pension is based on age (the standard pension age in Jersey is 65) and you can claim it whether or not you are still working.

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