Choosing voluntary redundancies is much better than compulsory redundancies. At the same time, it is worth noting that leaving a job has always been considered challenging. At the same time, neither the employees nor the company managers like it. At the same time, HR experts will have to carry out redundancy settlement at some point. But in this situation, there are many issues to be solved: the voluntary redundancy pay, how much notice should be given to the employee and many others.
Note that if you give staff a choice, they will be much easier to manage. You should read our material if you are interested in voluntary redundancy rules.
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Taking voluntary redundancy is a process whereby an employer asks or an employee makes an entirely voluntary decision to take redundancy or leave a post and will be entitled to voluntary redundancy pay. The employee may well discuss the terms of their voluntary redundancy package, but the offer cannot be refused, and they will have to leave the post.
Voluntary redundancy and compulsory redundancy are in no way different in legal terms. The legal entitlements are virtually identical. As a result, the employee will not lose the right to statutory redundancy pay, and the employer will have to follow the same protocol as a simple redundancy. The following is followed in this situation:
If a staff member has yet to receive prior consultation, this may be considered unfair dismissal.
A company can present a nasty surprise in the form of an offer to volunteer for redundancy for several reasons:
Taking voluntary redundancy is often less painful for all parties involved – the employee and the manager. In addition, it can empower employees to take full control of their future. Employees working may decide to take this step for several reasons:
In any case, the head of the company makes the final decision on redundancy. But first, the employer asks the employee about it.
The main reason for redundancy is that a company wants to save costs. A business may be going through a crisis or a recession, so it needs to optimize its financial expenses. The first and most popular solution is to reduce the number of employees.
Compulsory redundancy may be due to role relevance – the position previously held by an employee is no longer relevant to the company. It may be due to restructuring, business changes or other factors.
Voluntary redundancy has certain advantages and disadvantages. We should familiarize ourselves with the main ones below.
The following advantages characterize voluntary redundancy as a method of staff restructuring or downsizing:
Having studied all the pros of voluntary redundancy, with a competent approach, it will be possible to arrange everything in the best way so that, in the end, all parties are satisfied.
Note that voluntary redundancy is always associated with certain risks. The main disadvantages include:
Redundant is worth organizing competently to secure your business from any potential risks.
Employees have the same legal rights, whether subject to compulsory or voluntary redundancy. But in any case, employers must inform employees of all legal aspects to avoid problems and claims later on.
First, it is worth noting that a company is not obliged to accept all requests for voluntary resignation. It is very important for any company, as this will enable it to reject applications from employees in business-critical roles. It is also necessary to agree on a fair and accurate selection process when choosing between several employees who wish to leave is necessary. It will avoid the problem of discrimination.
Before entering into any contractually bound agreement, it is first worth clarifying exactly what the employer must do in the labor code. Naturally, employees will want to protect themselves legally so that leaving their position cannot negatively affect their future life or employment prospects.
A voluntary redundancy must follow the same procedure as a simple dismissal. There are a few important points to consider in this situation:
In any case, document every step of the termination, every letter, meeting, etc.
The notice period depends largely on how long the employee has worked. In any case, you should send a written explanation as to why the employee wants to leave their position. However, this should be done within the statutory notice period:
These are only indicative figures. More information can be found in the labor contract with the company.
Once the redundancy process has been initiated, it is a matter of negotiation to work out the optimum package of benefits the employee will be entitled to when they leave. It includes redundancy pay and so on. Volunteers or other professionals who provide counseling services can also be asked to help throughout the negotiation process to ensure everything is done correctly and legally.
After dismissal, employees are entitled to claim benefits, including redundancy pay, regular income for jobseekers and other financial support. However, you can only receive additional money in several situations:
There may also be other benefits such as housing, council tax relief, etc. If you risk losing your job over time, it is also worth checking in advance whether your universal credit insurance has payment protection to cover some of your living expenses.
You are entitled to a redundancy payment if you have worked for the company for over two years. In addition, we must be given written notice of how the settlement based took place. Often, payments for voluntary redundancy are higher than the standard statutory amount, as your current salary and length of service are considered in this situation. The following rules are used as a basis for calculating the minimum amount:
But this rule also has exceptions, especially if you refuse alternative employment and decide to leave.
Note that the first £30,000 of your severance package is exempt from tax and national insurance payments. But in any case, before you go for redundancy, it is worth considering how you will cope with your expenses without a regular salary. It is worth planning a budget to cover your expenses in this situation.
Compulsory redundancy is not the end of the world. If you have signed your application for voluntary redundancy and received your lump sum payout, it is a great time to start moving on and getting a new job. Most employees say after a while that redundancy was the best thing that ever happened to them because they started to move on and become more successful. With a generous amount of redundancy money and other benefits, it provides a fresh start in life.
When an employer first offers you a redundant job, it is worth considering your prospects in the employment market. You can look for the same position you held before but in a different company or change your field of activity. You can also send a resume for a higher position, such as general manager or department head. If you have always wanted to do something different, this is a great chance to change careers and find a new job.
If you are interested in employment in the same field or a new direction, you can use virtual job boards, where hundreds of thousands of vacancies are presented. In addition, many useful information portals on the web tell you how to move on after voluntary redundancy.
