Worked a year for free, basically

[Sadandstressed26]

A year ago my employer launched a voluntary severance scheme. The scheme met the number of staff it needed to.

A year later we have voluntary and potentially compulsory redundancies.

If I am made redundant, I will have worked for free, the difference between the voluntary severance and voluntary redundancy is huge. If I am not, there are lots of people in the same boat so it will apply to some.

I take take voluntary redundancy for the same reason I couldn't take voluntary severance.

I'm not sure what I'm asking for really, just want to vent.

To top it off, we haven't been informed of any restructures, but it was published on a shared company drive.

Not alone at all

What made you decide not to take the voluntary redundancy package a year ago?

This is why I always advise people to take redundancy if it's offered

The first payoffs are usually the most generous. I'm almost tempted to say always the most generous.

it took me awhile to understand the working for free thing. That would obviously be illegal. But you're upset so you said a silly thing.

It wasn't redundancy a year ago, redundancy wasn't on the cards. It was severance.

Thank you for those who have been kind and understanding.

You’ve worked you’ve been paid you have not worked for nothing at any point

you will still receive a basic statuary redundancy payment instead of enhanced redundancy payments

so it’s the difference between these 2 payments you have missed out on

Severance isn’t offered up to someone
It is either take it or leave with nothing in cases of termination of lay offs
Were you actually offered it?

She has spelt it out. £25k more on the voluntary deal

Everyone was offered the chance to apply for voluntary severance. Almost everyone who applied was successful. I only know of 3 people who were not.

How much is the difference
ours was 1.5 months instead of a month for ever years service but still capped at 12months

Redundancy is the elimination of a role or roles with a statutory payment made to compensate the employee for the loss of their job. Although statutory (so a legally set minimum) some companies offer enhanced redundancy payments.

a severance is an agreement between employer and employee often in the form of a settlement agreement,that the employee will leave their job. It may or may not be due to the elimination of a role. For example it could be due to the employer deciding they don't need a particular skill anymore. The payment is also a recognition that the employee will lose their job.

Voluntary redundancy

the word “severance” is not applicable

You were one of the three not successful?

It wasn't redundancy, it was a voluntary severance scheme, as I've said several times. I apologise if this is confusing for you.

Yes

But severance wouldn’t be “voluntary”

Severance is where someone will be leaving the organisation whether or not they take the severence offered. They don’t have a choice.

You don’t “apply” for severence.

You are told you’re terminated / laid off and this is the severance you’re offered. Take it or leave it

I don't know what to tell you, that was the name of the scheme.

Except you wouldn’t have worked for free because you’ve bee paid for 12 months. You choose not to take voluntary redundancy. Voluntary always pays more than compulsory.

Why are people so snippy and keen to catch the op out? It’s perfectly clear, and I’m sorry op, you probably took a chance your job would be safe and you’d be better off long term, and now you find you could have taken £25k and found a new job, rather than be facing a much reduced package.

Did you apply and not successful?

The word "severance" is applicable if it was severance not redundancy. There are differences. E.g. of an employer offers redundancy, they are not allowed to hire someone else to do the same job, otherwise they would be open to an unfair dismissal claim.

If it's severance, they can hire someone to do the same job for half the money the next day if they feel like it.

I’ve run voluntary severance schemes with UNISON NUT and CMU. They absolutely use the language whether or not it’s technically correct. 2 of those unions had collective agreement that only VS could be offered

You don’t apply for severance

you accept it or you leave with nothing

either way - you are out the door

often though, people don’t take voluntary because they are not confident of being able to secure another job.

I think you just made a mistake to stay on longer. The company may have been trying to rescue itself but seems to have failed. It might have been a good idea to stay on, but it wasn't, just a wrong decision on your part in hindsight.

It’s easy to make the correct financial decision in retrospect, just as it would be easy to place the winning bet if you could watch the whole race first. You worked for the amount you mutually agreed with your employer each month and you‘ll be happier if you can reframe it and see it like that.