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What are the implications of partial severance? Can anyone advise?(5 Posts)
My employers are offering some voluntary severance schemes.
I was thinking about trying to negotiate some part-time option in any case but not a huge change - perhaps to a 0.8 or 0.75 contract. This would be a permanent change to my contract though. Not sure if they would accept it or if I actually want to do it. But seems mad to turn down the option of a lump sum in order to do what I might have done anyway.
The main issue is that I wouldn't have the right to return to full-time work later (would I in any case?). And presumably I also have to think about my pension etc...
I dunno. Any experts around who know what it really would involve?
Not sure what you mean by partial severance, it sounds as though you just want to reduce your hours, is that right?
In which case yes that would usually impact on your pension, and yes it would probably be a permanent contract change with no right to increase hours later.
Are you thinking along the lines that as your employer wants to reduce headcount they might welcome the idea of you reducing your hours and might be prepared to give you a financial incentive to do so? You could certainly ask, and exchange reduced hours for a one off payment. That would be possible, but obviously not necessarily something they'd want to spend money on/be bothered with, and if they think it's what you want anyway it's difficult to see much of a huge incentive for them to compensate you for doing so really.
Apologies if that's not what you are thinking at all.
Or are you just asking for opinions on whether it's worth turning down a lump sum for job security and the hours you want?
Flowery, thanks for your comments (and the bump BALD), in the voluntary severance details they sent round they seem to be offering precisely that - ie a move to permanent part-time hours for a proportional lump sum. It is all negotiable based on operational need though and I'm not sure whether they would think my case a good one for reducing hours. I'm also concerned about the impact on my colleagues - clearly they would pick up the slack I left behind and it might damage relations etc...
I suppose I'm just canvassing views on whether there are implications of moving to permanent part-time hours that I haven't thought about (do you know whether I could ask to keep my pension contributions at the same level - presumably they would reduce theirs? I dunno, tax, pension things are a bit vague to me!)
I see. Well if they're actually offering that as an option it's definitely something to consider.
Presumably as it's negotiable depending on organisational need, if it wasn't practicable to do it in your department, they wouldn't do it? Just thinking about your colleagues. Presumably also the impact of people reducing hours might be less than if people leave entirely, either voluntarily or by compulsory redundancy.
In terms of whether you could keep your pension contributions the same (or indeed whether they might be prepared to keep theirs the same as well...) will depend on the terms of your scheme and how flexible they are in terms of negotiating the reduction in hours. Most things are possible. Obviously holiday entitlement would reduce proportionately as well.
In my view, if you have the opportunity to stay in a job, get the hours you want, and get a lump sum payment at the same time, you should do it!
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