Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to consider taking voluntary redundancy?

37 replies

Richlinn · 29/12/2011 13:22

I have been offered the chance of voluntary redundancy with a proposed payoff of £40,000. My dilemma is - My partner does not want me to take it as I have a 'nice' job - no stress, 35 hour working week etc. He is concerned (probably) because any other job I get will involve a big reduction in pay and realistically I still have 15 - 20 years left to work. My current pay is just over £20k.
I have an idea for my own company and have toyed with this idea for a few years. It could be the kick up the bum I need to go ahead and start this. Partner -again- very negative regarding this, but is vewing his opinions as being realistic.
So, do I stay in my job or go? All opinions very welcome.

OP posts:
Original poster
Richlinn · 29/12/2011 13:24

vewing should read viewing*

OP posts:
NinkyNonker · 29/12/2011 13:27

What is his job/financial situation like? Is your job guaranteed if you decline, and if redundancy comes up later on will the package still be the same? What is your family situation, finances, kids, housing etc? What is the business?

Sorry, lots of questions!

Original poster
Richlinn · 29/12/2011 13:34

My job is guaranteed if I decline and package would be the same if offered again. Partners job seems to be quite secure and he earns approx £18 - 19k per annum. In social housing so would still pay full rent, council tax etc. My debts are minimal, partner has significantly more, but they are his responsibility, not mine. I have some savings already (£8k) so have a little cushion as well. Business is one that probably will not make a lot of money but is something that I care very deeply about.

OP posts:
Angel786 · 29/12/2011 13:42

I'd be v tempted to take the package. But only if you set up a business plan to start your own thing up as that sounds like where your passion lies.

NinkyNonker · 29/12/2011 13:44

How affordable is day to day life without your salary?

SoftKittyWarmKitty · 29/12/2011 13:45

Try to see yourself in five years' time. Question how you'd feel if you were still in the same job, then try and view how you'd feel if you took the VR and was running your business. Your feelings on each possible scenario will give you an idea of what you should do. A partner should be supportive but some people don't like change or uncertainty, and some don't want their partner to better themselves. Only you know which it is.

In your position I would go for it. £40k is a massive payout and will keep you going while you get established.

Original poster
Richlinn · 29/12/2011 13:51

NinkyNonker - I have calculated that I would need to find £400 per month to cover my share of bills annd food.
Thanks for all responses so far.

OP posts:
PigletJohn · 29/12/2011 13:58

if you have an idea for a business of your own, get started while you still have a lifebelt of a secure job.

You can work evenings and weekends, same as you'll have to when/if you're in business full time.

you say the offer will be the same in the next round of redundancies.

Obviously you know that most startups fail; it isn't an easy life, etc, but you may as well get started and gain experience while you have a salary coming in.

ElizabethDarcy · 29/12/2011 14:03

As someone who has followed her heart twice and opened her own businesses (in 2 different countries!)... I would say follow your heart and see this as a door opening, and run through it! Do your homework re how soon your new business will bring an income in etc. Good luck!

Original poster
Richlinn · 29/12/2011 14:09

For more background - I have approached my current employer regarding working on my own business at the same time as my full-time employment. Unfortunately, the answer is no as there is a conflict of interest, so I either shelf my own idea completely or leave my job.

OP posts:
Original poster
Richlinn · 29/12/2011 14:10

Again, thanks for all responses so far. It is quite refreshing to hear such positive comments, so thank you.

OP posts:
PeaceofCakeAndGoodWineToAllMN · 29/12/2011 14:15

Nothing ventured, nothing gained. I'd look into it more first though, your local Chamber of Commerce may be useful, there's also the Princes Trust who offer support and financial assistance if you're within a certain age group. As Elizabeth says, do your homework.

Best of luck with whatever you decide Smile

WhereYouLeftIt · 29/12/2011 14:22

It is a pity you can't run your business and be employed in parallel - this is the route DH took when he had an idea for a business. Encouraged by dipping his toe in the water, he took VR and went full time; it has gone from strength to strength.

You would be in a position of having nearly two years' salary in the bank, to pay your way and provide capital for getting the business off the ground. If you are sure of your business idea (as DH was) then you would always blames yourself if you didn't take this chance.

But, as a cautionary tale - I also took VR some years before DH, with the plan of going to university and qualifying in a different field. It didn't work out quite that way and my earning power is severely curtailed.

TheFarSide · 29/12/2011 14:22

It would help if you had your DP's support, but don't let him stop you doing what you really want. It might also be helpful to consider how you would feel if you let this opportunity pass you by.

I took redundancy (£9k) and six months later am working two days a week in a much less stressful situation with plans to work for myself on the other days. I'm not spending much and still have plenty of money left, so I'm taking my time and enjoying life away from the rat race. I am still paying my share into the joint account.

I have never regretted it for one second.

HidingInTheUndergrowth · 29/12/2011 14:23

40k is an excellent payout and enough that you could live on it for a while before you needed to worry too much.

Personally I would go for it if I were you, however i would really try to get dp on board. It sounds to me like his concerns is mainly financial and really quite understandable so I would sit down and do lots of plans and sums. Work out exactly how long the £40k will last you, write a clear business plan, set yourself goals and timescales and be very strict with yourself about keeping them. Also make sure you have a plan b if the business doesn't work out. That way you can sit with you dp and show him that you have thought it through and that your plans are financially viable. This might reasure him that you are not jacking in your nice safe job for an unknown dream.

As a little encouragement my dad took voluntary redundancy quite a few years ago now for a similar sum, he paid of most of the morgage and went to uni to retrain. It was the best decision he ever made. :o

Original poster
Richlinn · 29/12/2011 14:26

Peace of Cake - I am way over the age for Prince's Trust financial assistance, but your suggestion has made me smile. My sister says I should do it now before I'm too old and decrepit Grin.

OP posts:
ChippingInLovesChristmasLights · 29/12/2011 14:34

£40k is more than 2 years of your current pay and is lot of months worth of your contribution to your joint finances. Plus the £9k savings you have you are in a comfortable position (especially in social housing).

If your business was something you thought you could make a decent living out of, I'd say go for it, but tbh it sounds like a hobby you think you would enjoy doing (is that right?).

I am surprised you asked your employer about starting up your own business. Do you think it's a conflict of interest?

Where do you see yourself in 5-8 years time when you have used up your VR & savings?

Original poster
Richlinn · 29/12/2011 14:35

This message board has been a great help and is making me realise that I should take the payout, work another job at weekends, and follow my dream. Thanks to everyone for giving me clarity.

OP posts:
ChippingInLovesChristmasLights · 29/12/2011 14:35

What is it you would like to do?

PeaceofCakeAndGoodWineToAllMN · 29/12/2011 14:40

I walked out of my job after a bout of ill health last year and started writing instead. I sat in the clinic waiting and thought about where I could be in 20 years time. I could continue being stressed out, continue being unwell because of it or not. It's the best thing I've ever done (except for having ds). I'm actually happy. I work as a freelance not taker also. The pay's crap but I get to sit and make up stories for children's books all day. Go with your heart.

PeaceofCakeAndGoodWineToAllMN · 29/12/2011 14:40

Doh! Note taker, not 'not' Blush

Rezolution · 29/12/2011 14:47

Sorry to add a note of caution here. Your salary includes fringe benefits I expect - , my point is you would get sick pay if you were ever struck down with something nasty and laid up for a bit. Your own business would not be bringing in any money while you were ill.
Otherwise I would say take the money and run!
Why not take the money and then get another job? And work at your business as a sideline?

PeaceofCakeAndGoodWineToAllMN · 29/12/2011 14:49

You can get insurance for that Rez, National insurance contributions also go towards SSP (which is a rubbish amount).

Original poster
Richlinn · 29/12/2011 14:49

Chipping - You are right, it is a hobby that I enjoy doing but I do think that a little money could be made from it. Personally, I can see where my employer is coming from regarding a conflict of interest but would have liked them to be a little bit more flexible.
In 5-8 years time if I had used up all my money and my business was not a success, I would obviously be very unhappy. Or, I could have made a go of it and if so, it will have been of benefit to quite a few people.

I have cold feet because I left a steady job years ago and in the end I was left with no money and no security, and I remember that time well. I really do not want to return to a situation like that.

OP posts:
WhereYouLeftIt · 29/12/2011 14:58

Richlinn, DH's business could be said to be based on his hobby too. When he first explained it to me, I believe my response was "And people will pay you for that?" Well, they do. Enough to compensate for my loss of earning power.

(I don't want to say what he does, it is very niche and therefore identifying.)