|
jamesgtfc |
November 29, 2021, 12:22pm |
|
Vodka Drinker
Posts: 5,996
Posts Per Day: 1.16
Reputation: 79.95%
Rep Score: +20 / -5
Approval: +12,813
Gold Stars: 187
|
Why would any of them agree to that when they’re injured? Not like it’ll be easy to pick up another club
In the case of Scannell and Grant, being released may allow them to train somewhere else closer to home or they may choose to retire and cash in an insurance policy. Mutual agreement doesn't mean we've torn up the current contract and aren't paying them another penny, it means both the club and player have agreed a settlement figure. I would imagine being constantly injured miles away from friends and family is pretty draining.
|
|
|
|
|
GollyGTFC |
November 29, 2021, 12:35pm |
|
Whiskey Drinker
Posts: 3,863
Posts Per Day: 0.68
Reputation: 67.2%
Rep Score: +19 / -11
Approval: +5,926
Gold Stars: 347
|
Why would any of them agree to that when they’re injured? Not like it’ll be easy to pick up another club
Because the first £30,000 of redundancy pay is tax free. An example... A player on £1,000 a week with 30 weeks left on his contract will receive gross pay of £30,000 but pay around £7,600 in tax & national insurance. So they will receive around £22,400. The employer (GTFC) also has to pay the employer contribution of NI, 30 weeks at £1,000 a week work out at a cost of £3,380. So the remaining time on the contract is going to cost the employer (GTFC) £33,380. The player will receive around £22,400 after the normal deductions. So they compromise and settle the contract for £28,000 as a redundancy package. The club saves themselves over £5,000 on a player they don't want. The player pockets an extra £5,000 & can find himself alternative employment. Everyone's a winner.
|
|
|
|
|
GollyGTFC |
November 29, 2021, 12:36pm |
|
Whiskey Drinker
Posts: 3,863
Posts Per Day: 0.68
Reputation: 67.2%
Rep Score: +19 / -11
Approval: +5,926
Gold Stars: 347
|
Everyone's a winner.*
*Well apart from the HMRC.
|
|
|
|
|
Civvy at last |
November 29, 2021, 12:51pm |
|
Posts: 11,466
Posts Per Day: 2.05
Reputation: 74.47%
Rep Score: +36 / -13
Approval: +12,200
Gold Stars: 131
|
Because the first £30,000 of redundancy pay is tax free.
An example...
A player on £1,000 a week with 30 weeks left on his contract will receive gross pay of £30,000 but pay around £7,600 in tax & national insurance. So they will receive around £22,400. The employer (GTFC) also has to pay the employer contribution of NI, 30 weeks at £1,000 a week work out at a cost of £3,380.
So the remaining time on the contract is going to cost the employer (GTFC) £33,380. The player will receive around £22,400 after the normal deductions. So they compromise and settle the contract for £28,000 as a redundancy package. The club saves themselves over £5,000 on a player they don't want. The player pockets an extra £5,000 & can find himself alternative employment.
Everyone's a winner.
I doubt they could be made redundant. It is the job position that is made redundant, not the employee !!
|
| The wife was going away for a girly weekend. I jokingly remarked 'I don't know whether to spend it watching porn or watching football' 'you may as well spend it watching porn' she replied That's understanding darling what makes you say that? I asked She said 'Well you already know how to play football' |
|
|
|
|
arryarryarry |
November 29, 2021, 12:51pm |
|
Barley Wine Drinker
Posts: 10,194
Posts Per Day: 1.71
Reputation: 52.76%
Rep Score: +26 / -28
Approval: +9,940
Gold Stars: 113
|
Because the first £30,000 of redundancy pay is tax free.
An example...
A player on £1,000 a week with 30 weeks left on his contract will receive gross pay of £30,000 but pay around £7,600 in tax & national insurance. So they will receive around £22,400. The employer (GTFC) also has to pay the employer contribution of NI, 30 weeks at £1,000 a week work out at a cost of £3,380.
So the remaining time on the contract is going to cost the employer (GTFC) £33,380. The player will receive around £22,400 after the normal deductions. So they compromise and settle the contract for £28,000 as a redundancy package. The club saves themselves over £5,000 on a player they don't want. The player pockets an extra £5,000 & can find himself alternative employment.
Everyone's a winner.
Not sure how easy it is to make a footballer redundant, it's not like his role isn't there anymore and I don't think being injured or crap is an excuse either especially if you sign another player as a replacement.
|
|
Logged |
|
|
|
|
HertsGTFC |
November 29, 2021, 12:52pm |
|
Posts: 13,857
Posts Per Day: 4.23
Reputation: 78.66%
Rep Score: +29 / -8
Location: Stevenage
Approval: +22,648
Gold Stars: 217
|
Because the first £30,000 of redundancy pay is tax free.
An example...
A player on £1,000 a week with 30 weeks left on his contract will receive gross pay of £30,000 but pay around £7,600 in tax & national insurance. So they will receive around £22,400. The employer (GTFC) also has to pay the employer contribution of NI, 30 weeks at £1,000 a week work out at a cost of £3,380.
So the remaining time on the contract is going to cost the employer (GTFC) £33,380. The player will receive around £22,400 after the normal deductions. So they compromise and settle the contract for £28,000 as a redundancy package. The club saves themselves over £5,000 on a player they don't want. The player pockets an extra £5,000 & can find himself alternative employment.
Everyone's a winner.
Can you get a redundancy payment if you've been employed under 2 years? Remember these lads are on fixed term contracts as well so it may work differently.
|
| "Crombie you would have got to that if you weren't such a fat ba%$@rd" - George Kerr, inspiration from the dug out 70s style |
|
|
|
|
mimma |
November 29, 2021, 12:53pm |
|
Brandy Drinker
Posts: 2,633
Posts Per Day: 0.44
Reputation: 85.27%
Rep Score: +15 / -2
Approval: +5,545
Gold Stars: 78
|
Is paying up a contract different to redundancy money when it comes to tax? By paying them off, they are in effect giving them their wages up front, so it will be taxable.
|
|
|
|
|
GollyGTFC |
November 29, 2021, 1:04pm |
|
Whiskey Drinker
Posts: 3,863
Posts Per Day: 0.68
Reputation: 67.2%
Rep Score: +19 / -11
Approval: +5,926
Gold Stars: 347
|
Not sure how easy it is to make a footballer redundant, it's not like his role isn't there anymore and I don't think being injured or crap is an excuse either especially if you sign another player as a replacement.
Anyone can be made redundant. There's no legal restriction in regards who can and can't be made redundant as long as the process has been fair & open. In regards to a footballer... If he's in the "bomb squad" and knows he's not going to play, might be commuting a considerable distance to train with the stiffs/kids and can cut a deal to leave then why wouldn't he? The legal framework around redundancy (apart from ensuring discrimination laws are followed) are more to do with rules on payment for statutory redundancy (i.e. when the employee has no choice in the matter). The footballer will always have a choice (voluntary redundancy) and can turn down the offer. But why would he turn it down if he's not going to play, will earn more money (in his pocket) leaving whilst saving himself a fortune in commuting costs.
|
|
|
|
|
GollyGTFC |
November 29, 2021, 1:05pm |
|
Whiskey Drinker
Posts: 3,863
Posts Per Day: 0.68
Reputation: 67.2%
Rep Score: +19 / -11
Approval: +5,926
Gold Stars: 347
|
Is paying up a contract different to redundancy money when it comes to tax? By paying them off, they are in effect giving them their wages up front, so it will be taxable.
No. If a contract is terminated early it is classed as redundancy with the player receiving the legal tax free limit (£30k) on redundancy pay.
|
|
|
|
|
GollyGTFC |
November 29, 2021, 1:24pm |
|
Whiskey Drinker
Posts: 3,863
Posts Per Day: 0.68
Reputation: 67.2%
Rep Score: +19 / -11
Approval: +5,926
Gold Stars: 347
|
Can you get a redundancy payment if you've been employed under 2 years? Remember these lads are on fixed term contracts as well so it may work differently.
You can. The 2 year rule basically just means that an employer can get rid of somebody with less than 2 years service without giving them a reason. It doesn't mean the employee isn't entitled to redundancy pay (statutory as a minimum). But under most circumstances where someone (as an individual) is being dispensed of with under 2 years service (without a disciplinary process being involved) then a deal is usually agreed on an enhanced payment to avoid potentially time consuming and financially costly arbitration etc... You're coming at it from a footballer having an enforced redundancy with only statutory payments due based on length of service, age etc... Voluntary redundancy is exactly what it says. Voluntary. Statutory redundancy payments are irrelevant. Voluntary redundancy payments are negotiated between the 2 parties (employer & employee). I took voluntary redundancy in 2019. I didn't have to leave. They made me an offer after I registered an interest in being made redundant. It was given considerably more than I would have received in a statutory redundancy situation for 10 years service on my then salary.
|
|
|
|
|