Why is my TNVR payment treated as an ETP rather than a genuine redundancy payment?

An Employment Termination Payment (ETP) is a payment made in connection with the end of a person’s employment. A Genuine Redundancy Payment (GRP) is a particular type of termination payment that must meet specific requirements to receive concessional taxation treatment.

It has come to our attention that payments made under Targeted and Negotiated Voluntary Redundancy (TNVR) arrangements should correctly be treated as Employment Termination Payments (ETPs), rather than Genuine Redundancy Payments (GRPs), for taxation purposes.

The revised MPSS provides for a Head of Agency to approve an additional payment, where applicable, to provide a comparable net financial outcome at the time of payment.

Individual circumstances can differ, and employees may wish to seek independent financial or taxation advice.