The Financial Services Union (FSU), the trade union which represents workers in the Finance, Fintech, and Tech sectors, has criticized Permanent TSB (PTSB) for their recent announcement of a voluntary redundancy scheme for their staff.

PTSB announced in early December that a voluntary redundancy scheme that was previously aimed at senior management at the bank has been extended to include all staff in an attempt to cut staff numbers.

The National Redundancy Helpline was set up to bring you redundancy news and free and reliable information about redundancy in Ireland.

What is redundancy

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Permanent TSB Voluntary redundancies

It is believed that hundreds of jobs at the bank are expected to be lost through voluntary redundancy although the bank has not said how many staff are expected to go. The new scheme was opened up early in December 2024.

A bank spokesperson has said “Following a period of transformational growth, the bank is now undertaking a number of important strategic business transformation change initiatives to enable its strategy and improve organisational effectiveness and efficiency. These initiatives will ensure that the bank’s business model is both robust and sustainable into the future.”

FSU General Secretary, John O’Connell, expressed “There has been no discussion with the FSU around this announcement and no signal to the staff that a redundancy program was imminent”, the scheme was further criticized by the FSU as being ill timed in the run up to Christmas.

PTSB employs in the region of 3,000 workers including 66 former Ulster Bank employees who transferred to PTSB following the acquisition of Ulster Bank assets by PTSB.

There may be concern that this could be a precursor to selecting employees for compulsory redundancy, despite the profitability of the bank.

In July 2023, PTSB announced that it had completed the acquisition of c.€6.75 billion of the Ulster Bank Retail, SME, and Asset Finance business in the Republic of Ireland, following Ulster Bank’s withdrawal. 25 Ulster Bank branches were included.

PTSB’s pre tax profits in the first six months of 2024 were €75 million, and the bank is still majority owned by the Irish State at 57%.

Lower staffing levels at the bank may also mean the withdrawal of retail banking branches, including PTSB and former Ulster Bank branches, and lower levels of service for customers of the bank, especially in regional and rural areas. 

A strong bench network crucial to the financial wellbeing of many individuals and businesses who rely on access to branch retail banking.

Choosing voluntary redundancy

If you are offered voluntary redundancy by your employer, even if the terms seem favourable, you must carefully examine the offer you have been made and consider how it will impact your current finances and your future pension entitlements.

Bear in mind that there must be a fair and transparent selection process and you may not necessarily be selected for voluntary redundancy when you apply.

The National Redundancy Helpline can help you with advice on your options and entitlements if you have been offered voluntary redundancy.

Check the redundancy offer. You may be offered incentives to take voluntary redundancy such as an ex gratia payment above the statutory redundancy pay that you are entitled to or pay in lieu of working your redundancy notice period.

Statutory redundancy is the minimum amount of redundancy pay you are entitled to and depends on your years of service with your employer and your normal weekly pay.

Statutory redundancy pay is usually tax free but any payment above the statutory minimum or pay in lieu of working your notice period may be subject to income tax and USC.

You should also check your social welfare entitlements before you accept any redundancy offer from your employer as your redundancy payment may affect the amount of Jobseekers Benefit you are entitled to. 

You may not be entitled to a Jobseeker’s payment but you may be entitled to credited PRSI contributions.

It is important to maintain your PRSI contributions to avoid a gap in your record which could affect future social welfare and pension entitlements. 

If you have an occupational pension you may wish to seek pension advice before choosing voluntary redundancy. You may be entitled to a tax refund if you are not working for some time.

If you have income protection insurance in place, this may be affected if you take voluntary redundancy. 

You may not be covered by your income protection policy following voluntary redundancy as you would usually need to be working full time to avail of income protection cover.

National Redundancy Helpline

PTSB aims to trim staff numbers with their announcement of voluntary redundancies at the bank and has drawn criticism for this given that they appear to be a profitable and expanding organisation and are partially State owned.

If you are in a position where your employer is offering voluntary redundancy, bear in mind that applying for voluntary redundancy is a big personal decision to make and you must weigh up the pros and cons carefully before you apply for any voluntary redundancy offer made by your employer.

The National Redundancy Helpline can help you with free redundancy advice around your entitlements and options. Our redundancy advisors can carry out a full assessment and review of your redundancy offer. 

Start our online assessment today and you can receive a free, unbiased phone consultation for advice on your next steps leading to a free case evaluation.

Tax & Pension Opportunities From Your Redundancy?

Your employer may be presenting an apparently generous financial offer.

However, the payment you accept now may have long term pension & tax implications for you. You must avail of our independent advice before deciding or signing any employer’s offer.