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Thoughts on voluntary redundancy?

(2 Posts)
mandyg27 Tue 12-May-20 18:24:02

The company I work for have been hit very hard by the coronavirus outbreak and have just announced a voluntary redundancy scheme. They are offering extremely generous terms, and if I was accepted I would receive quite a substantial payout. However, I would need to make a decision and start the application process quite quickly.

I was genuinely already looking to leave, for several reasons, but obviously I would much prefer to take my time to find the right role and have something confirmed before handing my notice in. I have now started looking but it's unlikely I'll be able to get an offer sorted before the deadline. This isn't something I've been through before and I'm also concerned about how it may look to any future employers.

Does anyone have any experiences (good or bad!) that they would be willing to share?

maxelly Wed 13-May-20 11:31:54

I haven't personally taken VR but work in HR and administer VR schemes a lot. It's always a tricky one because you've got to weigh up the size of the payout with the time you think it will take you to find another role and obviously with the current uncertainty in the economy it's hard to know what that looks like right now. In terms of how it looks to future employers, I think you will be fine so long as you don't end up with a very long gap in employment on your CV - or if you do you have a good reason for that e.g. you took the opportunity to have a career break to study/spend time with family/travel (ha, not at the moment!) etc.

Some employers are I guess automatically suspicious of someone who has been made redundant (voluntary or compulsory) in case it was their previous employer using redundancy to get rid of them due to under-performance or bad conduct or something, but this is more the case in boom economic times or in industries/roles where redundancy would be uncommon due to high demand. I think there will unfortunately be a lot of people who lose their jobs due to COVID in the next few years so I doubt that will apply. And if you can get a good personal reference from your employer as part of the 'deal' (i.e. one actually stating your personal qualities and performance etc not the bland HR template setting out dates, that would be great. But some employers won't give these any more). I don't think it being a voluntary redundancy makes too much difference compared to a compulsory personally, although maybe others would disagree?

Overall if on comparison of the compensation you are being offered offset against your 'realistic worst case' scenario of how long you will be unemployed for still stacks up well then makes sense to go for it. Also, how likely do you think it is that if you don't take this deal you will end up being made compulsorily redundant anyway, and how do the compulsory/contractual terms compare to what you'd get then, as that is another valid consideration? If for instance you are being offered a year's salary to leave now, if you don't take it you'd be highly likely to be redundant within 6 months and would only get a month's salary then, seems to make sense to take it?

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