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DP offered severence pay, help we don't know what to do?

(13 Posts)
FrameyMcFrame Wed 16-Jan-13 21:13:57

He's been offered 23k which is about 1 years pay tax free. His salary is 30,000.
If he applies for severance he might not get it. In which case he keeps his job.
If he doesn't apply for severance he might be made redundant and just get 5,000.

what should we do? If he could easily get another job there would be no problem taking it, just it's looking harder and harder to get a job?
He is 38, and in IT

I work too and bring in 1,800 a month which wouldn't be enough to pay all the bills and mortgage and food.

SocietyClowns Wed 16-Jan-13 21:17:27

Doesn't sound much of a choice. Apply and start looking for another job would be what I would do...

Viviennemary Wed 16-Jan-13 21:19:47

I think it depends on what you feel the chances are. If you think he is likely to keep his job then don't apply for the severance. If you think he is likely to be made redundant in the near future then it might be worth applying for the severence if by that you mean voluntary redundancy.

And presuming the voluntary is paying the £23K and the compulsory only statutory redundancy of £5K. But if he takes voluntary he won't be able to sign on for a certain period. But compulsory he will be able to unless it includes pay in lieu of notice.

It's a really difficult decision and don't rush into anything. Think it over carefully.

FrameyMcFrame Wed 16-Jan-13 21:26:06

thanks for the replies. It's a shock and we only found out today.
All the info they will give is that they are looking to loose 50% of staff so one in two will go eventually.
He just doesn't know if he will be the one or not. it feels like we will be gambling either way sad
He does hate his job quite a lot and he applied for promotion last year and was knocked back.
He has 2 weeks to decide, so not long.

FrameyMcFrame Wed 16-Jan-13 21:27:55

Vivienmary, do you know how long he would be unable to sign on for?
His plan would be to get a part time job ASAP and spend the rest of the time jobsearching for a full time job.

TheFallenNinja Wed 16-Jan-13 21:46:11

Take the money. There are lots of unemployed IT workers out there. Freelancing is a useful option.

Viviennemary Wed 16-Jan-13 22:47:40

I'm not sure exactly what the rules are about getting JSA after voluntary redundancy. But if he does decide to take it he should still sign on right away so he can be accredited with his NI contribution even if he doesn't qualify for Job Seekers Allowance.

GingerJulep Fri 25-Jan-13 23:48:56

Depending how long he has been there a year's pay is a pretty good offer. especially in this climate/when they are going to end up paying many people a lot less.

Assuming he has transferable skills a year (of full-time job-seeking) is a reasonable amount of time to find something else.

Especially with you to keep bills ticking over.

If he hates the job/isn't able to progress in the current place anyway this could be the kick up the derrière that gets him from years of dissatisfaction to actually going somewhere he wants to be.

If it were me I'd be advising OH to take the risk.

But it doesn't mean I'd be right, that is just my opinion.

Oh, and if he applies and doesn't get the voluntary then he should def start looking elsewhere. A firm cutting 50% of staff isn't likely to be giving out promotions/pay rises any time soon.

In fact he should probably start looking elsewhere anyway.

Good luck!

lubeybooby Fri 25-Jan-13 23:57:25

not being able to get jsa isn't true.

he should qualify no problem for contibutions based jas

that covers you for 6 months until income based jsa can be claimed.

starfishmummy Sat 26-Jan-13 00:17:50

Certain redundancy payments will affect eligibility for jsa. The op should get proper advice from the cab or similar with the full details of how the redundancy pay is made up.

Tasmania Sun 10-Feb-13 01:22:57

Take the money. One year's pay is pretty neat - seriously!!! And if he's good at his job, he should find something in half the time, sou you'll have plenty left over from the severance pay.

scaevola Sun 10-Feb-13 05:31:45

Yes, you can get JSA (contributions based) though this might be abated if he gets cash in lieu of a notice period. Job Centre staff work this out in light of exact circumstances.

If the firm's shedding this many staff, then I interpret this as a company in pretty big trouble and would tip me towards securing the good deal whilst it's still on offer. It might retrench successfully with fewer staff, or it might go belly up and then you'd be faced with pay freezes/cuts and/or statutory minimum pay outs (possibly delayed if insolvent).

shonun Tue 12-Feb-13 22:29:05

if he can get a job within a year then get off that sinking ship. as previous poster says, if they are shedding lots of staff the company is in trouble... at best it will be a stressful place to work, at worst he will be working late hours to make up for the missing staff and the comoany will go belly up later and he will get the lower redundancy payment. good luck, and let us know what you decided.

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