Voluntary severance - help!!(4 Posts)
Hi, I've not posted re employment type stuff before so please let me know if you think I'm in the wrong place! I'm on maternity leave at mo (DD 6 weeks old) and I'm due back in work ( Academic role) in September. Work have just announced voluntary severance and I'd get the equivalent of 10 months salary (based on what I take home after tax). I've never had money - despite good jobs, have large mortgage, debt etc- so to me this seems an awful lot! I need to express an interest in next 24 hours and just don't know what to do. My job is a demanding academic full time post and with two DC under two I'm daunted by the prospect of going back to work full time. Sometimes I would only seem DS for an hour a day due to work demands etc. If I don't go for this ( and I'm likely to get it if I do) and they go on to make statutory redundancies I'd get a couple of grand tops. The other complicating factor( sorry for long post and lots of detail) is that my DP and I are having quite serious difficulties at the moment- a whole other story- and I'm not convinced we are going to stay together. That is another daunting, frightening and emotionally challenging prospect and I'm devastated by what is happening. On the one hand I'm seeing vol sev as an opportunity to start again and throw myself into freelance/ visiting lecturer work and this will give me lots more time with my DC. On the other hand am I crazy to be considering financial instability at a time when my relationship is seriously floundering. I just don't know what to do. All advice will be gratefully reviewed!
If you are being offered voluntary severance now, does that mean that if you don't take it you may be made compulsorily redundant later? Are they embarking on a big restructure/ cost cutting exercise?
If the latter, it may be worth checking how much you would get in that case. It would typically be much less than VS. The maximum you could possibly get is £13000 and that's only if you have been working for the organisation for at least 20 years. I'm guessing that if you have a very young family that may not be the case, in which case any compulsory redundancy would likely be much less that the VS payment.
Another thing that may be relevant is that the first £30,000 of a VS payment is tax-free. If your payout was greater than than then putting the excess into your pension fund might be a good way to avoid it being taxed - but of course whether that's a good idea all depends on your particular circumstances.
I just REread your post more carefully and you already answered some of my questions in your original post. Sorry!
I think you need to seriously consider your plan b. I was an academic (Principal Lecturer so got a lovely chunk of vol sev). My post was a duplicate post after two academic schools were merged so I knew I would be at risk for redundancy down the road. I was the sole breadwinner DH was a SAHD so the decision to go salary-less was a difficult one to make.
We sold our house used the equity and are now mortgage free in a totally different end of the country. We are using the severance payment to start our own business which as everything is taking longer to get going than we first thought. So at the moment I am looking for a little something part time to tide us over. we are one year past severance now.
I think you need to think how you will deal with your mortgage and your debts And have a very open discussion with your DP. It is nice to think of 10 month's salary all at once but don't forget you will get 12 month's salary by staying put.
Having said all of that I would not swap where I am now for anything. I got to go to two nativity plays for my eldest 2 dcs this Christmas just gone and I chuffing loved it
and blubbed my eyes out
Good luck whatever decision you make remember to be kind to yourself. (you can pm me if you like)
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