It is a more pro- active approach to take, and an often a more costly one for the employer but one which is better for the employee. If voluntary redundancy packages are attractive to employees then often people who can see an alternative future maybe willing to look into this. This can include benefits such as the use of the company car for the next few months or enhanced payments, or continued payments to private health care for a specified time period. If the redundancy package is not attractive then the alternative is often compulsory redundancies.
When part of the workforce need to be made redundant it can be demoralising for the remainder however if it is done professionally and approached in a positive manner there are advantages.
- It gives the workforce time to look at their options
- It makes the workforce aware that the company is experiencing difficult times
- It is less disruptive to the team
- It possibly prevents compulsory redundancies
- It can be managed over a given time period
- It can mean staff can take early retirement if appropriate
Your employer will need to have made it very clear about the specific package that is being offered, what benefits you will receive and making it clear that not all staff who seeks voluntary redundancy will be eligible. The workforce will not be able to support a mass redundancy of one type of employee, as that aspect of the organisation will not be able to sustain its productivity. A select group will be chosen across the industry and a final list drawn up.
If you think that taking voluntary redundancy is a good idea you may feel it appropriate to discuss this option with your family and what it will mean to your financial position.
Points to Consider when taking Voluntary Redundancy
- Have you the support of your family or partner?
- Will the payment offer you enough time to either retrain or find alternative work?
- Are your financial outgoings fully committed or have you room to manoeuvre?
- Have you skills which are in demand in the local employment market?
- Will the employment market in your area be dramatically impacted on by the amount of people being made redundant?
- Have you looked into your Tax position?
- Will you be able to claim any benefits whilst you are seeking new employment?
- Have you looked into the possibilities of relocation?