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Redundancy, redeployment center and 30% ruling

cool_john
- 82 posts
May 9, 2012 11:58:07 PM CEST

Hello.

I am Knowledge Migrant here and working as permanent employee of a company.

I will be made redudant by end of 6 months from now ( some where in Dec, 2012). I will have two options after Dec,2012.

1. Take severance package and find a new job

2. Go to redeployment center ( max. of 9 months). Say in 3 months if I find a new job then I can still get some money as severance package and leave the company.

My question are

A. What will be impact of choosing option 2 on my 30% rulling?

B. Will I get 30% ruling for period spent in redeployment center also ?

C. What about future jobs and 30% ruling ?

Thanks in advance for your help.

This post was edited by cool_john at May 9, 2012 11:59:22 PM CEST
ouloveit3
- 608 posts
May 10, 2012 12:31:36 AM CEST

I don't know anything about your redundancy package etc .. but I do know that if the company lets you go for any reason .. you have 3 months to find another KM job or you will be in the country illegally.

If you find another KM job, that company will have to transfer your old KM permit to this new company (that's when the IND can tell if you have been out of work more than 3 mongths).

This new company must also apply for the 30% rule all over again of course. They have recently changed the 30% rule to add a salary requirement of 50k if you are over 30 years old and I think 27k if you are younger.

They have also shortened the duration of the 30% to 8 years instead of 10 years. So if (for example you have already used up 3 years on the 30% rule, with your new job you will only have 5 years left of the 30% and then it will be over.

The 30% is a tax advantage applies to your salary ... so if you are in the redeployment center and not working .. I don't see how you could receive this benefit during that time.

This post was edited by ouloveit3 at May 10, 2012 12:35:41 AM CEST
osita
- 2292 posts
May 10, 2012 8:47:13 AM CEST

You also have a third option: go and see an employment lawyer. Check the terms - often the company will pay up for you to consult a lawyer over the terms of the package (up to a maximum € limit). At this point, Ouloveit will say this is not normal because she's personally not heard of it: she forgets that she's not the only one in IT, and as this sounds like a large-scale redundancy program by a large company (is it?**) then check to see if this is part of what the company has to do to satisfy the CWI requirements (simply, check with HR).

** if you are the only one being made redundant, it's vital that you see a lawyer. Why? Because it's easier to made a (naive) expat redundant - they simply cannot terminate a permanent contract without a fight, so don't make it easy for them! If many of your colleagues are also being made redundant, then the company has to have pre-approval from the CWI/court, and a plan in place to help you (I think this is likely as they have a redeployment centre sorted out already).

The advantage (only advantage, I think) to a redeployment contract is it keeps you on their payroll (with your 30%) for longer. Generally, the stuff they teach is bull**** in my opinion: however, if you are non-EU then it might be more useful for you as you'll get an immaculate CV in perfect English (maybe in Dutch too) ... but most of all, it buys you up to 9 months worth of TIME to find a job. Assuming you'll still be on their payroll (this is usually the case) then you keep the 30% and when you find the next job, you won't have 4 months gap, so your new company will be able to reapply for it for you.

If you go for option 1, then the 90 day countdown to having to leave the country begins straight away.

Only you know if you can walk straight into a new KM job. I suggest you join LinkedIn groups for whatever your key skills are (eg: .net, Unix, C++, Oracle, SAP, etc,etc), set your notification to 'seeking new opportunities' and take part in lots of discussions - the headhunters will soon notice you, if you know your subject well and if you make sensible, informative, accurate posts.
cool_john
- 82 posts
May 10, 2012 11:09:51 AM CEST

Thank you very much for this info. I know what I have to do now. Thanks again.
expatican
- 80 posts
May 10, 2012 11:39:33 AM CEST

John,

Finally found someone who is in the same situation.

If you take the redeployment option you will still be in the payroll of the company so nothing will change regarding your immigration status. Once your time with the redeployment centre will be over then you officially become redundant. From this date you will have 3 months to find a new job provided your KM permit is still valid for the next 3 months.

The tricky part is the 30% ruling. I have been researching about this for months knowing that I will be made redundant shortly but NO EXPERT can answer what is the legal point on this. As per law any redundancy payment is not applicable for 30% ruling as it is considered not an income from employment but compensation for loss for future income. However being in redeployment centre is not a loss of future income so is it eligible for 30% ruling or not is not explicitly clear.

My company stops the 30% ruling after 3 months in the redeployment centre. This is normally the grace period for keeping the 30% ruling when you loose the job. Once it is lost, it is lost for ever unfortunately.

I am still interested to know what is the legal psotition on this issue. I have not heard of anyone who has challenged this in court.

I really wish someone could answer this. I will let you know if I know more and you let me know if you know more.

btb... do you work for a bank??? I think so..... RBS/ING/ABN?

Cheers!
cool_john
- 82 posts
May 10, 2012 11:14:40 PM CEST

Hello Expatican,
I am not sure. I have contacted my HR department to make it more official. They do not know so now they are busy in finding it out . However as mentioned by earlier members, make sense.

I will post the info as soon as I have.

Thanks.