Ulster Bank improves redundancy terms ahead of Ireland exit

The bank employs 2,800 people in Ireland

Ulster Bank said there will be no compulsory redundancies from the business this year. File picture

Ulster Bank staff are to vote on a revised redundancy package from the bank as it continues plans to depart the Irish banking market.

The lender provided an update on its phased withdrawal progress today saying it will now offer enhanced redundancy terms which will be the greater of five week's pay per year of service, including statutory redundancy or four weeks per year plus statutory redundancy.

The bank, which employs 2,800 people in Ireland, said the new terms have been agreed with the Financial Services Union (FSU) but is subject to ballot for agreement.

In a statement, Ulster Bank said it maintains the commitment that there will be no compulsory redundancies from the business this year.

"We will continue to keep colleagues and their representatives updated as the withdrawal activity progresses further. We will endeavour to provide as much clarity as possible for our colleagues, as early as possible," the statement said.

Ulster Bank's parent company NatWest confirmed in February that it would wind down banking operations in the Republic of Ireland over the coming years. 

The lender has agreed to sell its €4bn commercial loan book to AIB.

“This agreement is a significant milestone in Ulster Bank’s phased withdrawal and while it is subject to ballot, I am confident that with the support of the Financial Services Union," Ulster Bank Chief Executive, Jane Howard said. "We have developed a comprehensive, colleague-focused agreement which will underpin our principles to withdraw in a fair and responsible way for colleagues, customers and stakeholders.”