Advice please - Voluntary redundancy or not in this situation?

(8 Posts)
BicycleMadeForTwo Fri 27-Jul-18 19:37:03

I am being made redundant through a restructuring at work.

There was some discussion that I wouldn't be eligible for redundancy pay but thankfully they have now come back to say they will now offer me redundancy or voluntary redundancy which is great news (well as good as it can be in the situation)

I don't know the real difference between the two and will research this and speak to my rep next week but I was hoping someone could please answer two questions in the meantime.

Our organisation is a large corporation and has a great redundancy compensation plan. I have worked for the business for currently 15 years but only 8 years to this current grade so:

1. Would I get paid for my two weeks wage for the full 15 years or is it usually only to the current grade/job you are in?

2. It would have been 16 years that I have worked here at the end of September which would mean I am entitled to two and a half weeks pay per year (this would be an increase of almost £5000 to my redundancy pay and would really help us out) Should I take the normal redundancy and try to delay things until after the date by which I would officially have been there 16 years?

Sorry, I know this is a rambling post and I'm probably not explaining myself very well but hopefully someone can help.

Thanks!!

OP’s posts: |
JontyDoggle37 Fri 27-Jul-18 19:43:57

1. Full 15 years
2. I would go for voluntary redundancy and negotiate to get this year included if it isn’t already, especially as by the time they get done, it probably will be nearly that date anyway.

flowery Fri 27-Jul-18 19:56:59

1. Probably 15 years but without seeing the wording of the policy no one here will be able to tell you for definite.
2. Yes as pp said, negotiate to get this year included.

BicycleMadeForTwo Fri 27-Jul-18 19:59:50

Thank you, even knowing it should be the full 15 years really helps until I can speak to my Union rep next week. Really appreciate the replies. I'll hopefully try my best to negotiate over the sake of 2 months - fingers crossed!

OP’s posts: |
daisychain01 Sat 28-Jul-18 04:04:49

Definitely refer to the company's redundancy policy. It would normally be paid on the basis of unbroken full years' service, just as an example of how the policy might be worded.

Definitely negotiate, get your union rep to argue for your redundancy up to the anniversary of your start date - it would be shabby of them to try and wriggle out of this year, when you are approx 11/12ths through the year if your original start date was in Sept.

BicycleMadeForTwo Sat 28-Jul-18 16:01:13

Thank you. I’m hoping for an easy life all round they’ll agree. Appreciate the help!

OP’s posts: |
EBearhug Mon 30-Jul-18 01:06:52

Do check the policy - those who volunteer with us get less of a package than those who don't volunteer, according to rumour.

Why was there discussion about you possibly not being eligible?

maxelly Mon 30-Jul-18 14:14:40

Others have answered your questions above, but just to quickly cover the difference between voluntary and 'normal' or compulsory redundancy.

It would be absolutely normal for voluntary redundancy to be more financially advantageous than normal/compulsory redundancy, in order to incentivise applications, although in some organisations the package will be the same, which is why it's important to understand your organisation's policy.

Voluntary redundancy means that your employer does not have to 'select' you for redundancy as you are agreeing to be selected, which usually means you would not be able to claim you were unfairly dismissed. If you are planning on challenging the fairness of the overall process or your specific selection for redundancy, the fact you volunteered would certainly count against you and make any claim difficult to pursue.

Voluntary redundancy may mean your employer applies a shorter notice period than your contractual notice - again check and ensure you calculate any lost earnings/period of unemployment into your financial calculations and subsequent negotiations.

Voluntary redundancy usually means the employer will cease looking for suitable alternative employment for you (as they are otherwise obliged to do) and will usually remove your right to apply for internal roles and to any other career support they are putting in place. So if your best outcome is another role within the company voluntary redundancy is not the way to go.

Otherwise there's little practical difference between the two. If you are planning on making a claim for loss of income on any insurance policies you may want to check whether it will pay out in the event of you taking voluntary redundancy. Some kinds of benefits can be affected too.

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