To take Voluntary Redundancy

[ElevenBells]

After 10 years of being in the same job I have been offered voluntary redundancy at £20k (salary is 40k pro rata). Don’t particularly like my job, it’s dull and the office environment is toxic but the hours fit in with kids.
AIBU to take the money even though the job market is struggling and there’s few opportunities out there, especially part time which is what I would need. Realistically, I’d be applying for low level/minim wage jobs.
Background is that DH earns well but we have no savings as we weren’t able to get onto housing ladder until well into 30s so all savings have gone on deposit/jobs around the house.
I’m hoping to find a job, no matter how low the pay fairly quickly so I don’t have to dip into the redundancy payout and we can stick it in an ISA.
Is this madness? Senior management have assured staff that there are no plans for compulsory redundancies but they don’t have the best track record of keeping their word….

That is a pathetic redundancy package for a decade service and current salary £40k

It doesn’t sound like you can afford to do it, it’d be better IMO to stay and do what you can to increase your ability to compete for better paid jobs. If you’re selected for compulsory redundancy you could look then.

Badly paid jobs could be just as or more ‘toxic’.

The job sounds awful though
but by the sounds of it your opportunities are limited (why though? A decade at a job and on a decent salary and yet you think limited to minimum wage?)

Do it - poss be tax free depending on the terms of your redundancy plus when made redundant you can also claim contribution based job support (not a lot but something) so the money will last longer.
Make sure you are committed to applying for jobs and maybe even consider some temping etc. Whilst the job market may be a bit tough at the moment employers still need staff so are using short contract staff to fill gaps if scared about adding a permanent member of staff to the overheads.
I had a similar situation about 12 years ago and I took the money. Best thing I ever did and I’m now in a role I love and have been for over a decade. Wouldn’t have this job if I didn’t take the leap.
good luck.

All of the payment should be tax free so it’s equivalent to more than 6 months money. And while not generous it’s more than statutory redundancy which might be round the corner. I’d take it and look for a new job.

It’s not a bad deal - I’m assuming you work part time so probably closer to a year’s wage? Tax free. I’d take it.

The package is tax free. I’m limited to what I can apply for because DH hours means that I do most of the school runs etc. Wrap round care is expensive and hard to come by in my area so although it’s fine for a couple of days a week I wouldn’t want to pay for 5 full days plus holiday clubs. No family to help out either.

I think I’m tempted at the thought that it’s 20k that we can put straight in savings (our lack of savings stresses me out). It would take a long time to save that otherwise, especially with the work that needs doing on the house.

How old are your children?

9 and 6

I'd be tempted to take it but be prepared for a long wait to get a new job particularly if are restricted on hours.
Are you ok with being out of work a year or more?

It is always easier to get a job when you have one rather than when you are unemployed.

I turned down redundancy in a similar situation 20 years ago for this reason and have no regrets. It was a toxic workplace too but it depends how toxic yours is, only you know.

How long could you live on one wage? There is no point having savings if you have to eat in to them bc you can't get another job.

Ok so part time
and then a mix of holiday clubs and dh for on the days you’re at work over the holidays

this doesn’t necessarily mean minimum wage op

what does your dh think you should do?

Also I remember giving the same advice to someone else and when I saw her again she said that she wished that she had realised how hard it is to get another job when you don't already have one.

She thought that it would be easier bc she could start immediately etc.

He thinks I should take it, he knows I have very little job satisfaction but I’m much more cautious than him. I think I’m so institutionalised in my current job that I can’t even imagine working anywhere else 🤦‍♀️

The job market is really hard at the moment and only going to get worse. Redundancies are happening all over the place.
Is it likely to be an enforced redundancy if you don't go now?

Your personal earning ability is important in lots of scenarios for you/your family. Appreciate the childcare challenges, but that’s not insurmountable.

Realistically, I’d be applying for low level/minim wage jobs.
You say your current salary is £40k, and presumably that's from maximum 30 part-time hours given you won't use childcare (or even less because of school holidays), yet now you plan to look for minimum wage jobs. Why would you do that when you must have some skills to have landed your current role? If you aren't capable of being sensible and keeping the money while applying for better paid work, then you should stay put. After school clubs and holiday clubs cost about £5/hour per child, so should not be preventing you from working.

Just to say, if company does not get enough voluntary redundancies, of course the next step is compulsory redundancy. Compulsory redundancy is a company not needing your role, not specifically you. You could apply for another role. Have you worked out if your job/role is vulnerable or not? Would another role be better if you stayed? Voluntary redundancy can result in the wrong (skilled) people leaving and companies don’t want this. How many employees have been offered voluntary redundancy? Your whole department? Selected roles? How are they reorganizing?

I would read the ACAS guide to redundancy and you can calculate minimum redundancy pay from this. Is the voluntary severance pay better and does the company have a redundancy policy? If it does, read it.

There is a risk of not getting another job. Is the risk worth taking? Are your skills in demand? Are you well placed to move into another job? I’d try and weigh up everything.

Normally I’d say yes, but:

1. that’s quite a mediocre package they’re offering for voluntary
2. I’m self-employed. In October I thought I’d like to go in-house again, as I do periodically. I’ve applied for 70+ things, at or below my last employed level. I’m an Oxbridge grad with 20 years experience and I interview well - I’ve never been unemployed for more than 2-3 months before. I’m, er, still self-employed. Job market is dire.

I don't think it's enough money for you to go OP sorry to say .
40k pro rata is a pretty good salary especially with the hours you need .

Your DH has had his personal earning ability prioritised since having DC. Almost all the risk of this change would fall on you.

£20k won’t last long. This change would diminish your personal earning ability, short and possibly medium term. Minimum wage jobs may well not be any better or more flexible. It is much easier to get another well paid job when you already have one.

It’s not an awful package. I was on £47k and after 9 years got offered a £10k redundancy package and I took it.

It pushed me to jump to a different and more lucrative sector, absolutely thriving and loving my new job now. The redundancy, whilst stressful, was one of the best things that’s happened to me

I landed the new job whilst they were going through the redundancy paperwork. I was very lucky, and the redundancy pushed me out of my comfort zone and made me realise how much I’m worth in another workplace. Good luck!!

Your benchmark is low if you took £10k on circa £50k salary for 9 years wevice!!

Compulsory redundancies almost always follow voluntary redundancies. Is the current offer enhanced? If you didn’t take it would your job likely go anyway further down the road?

I've just taken VL and got £32k. I've been there less than 2 years. You need to negotiate more!

I also hated my job and am starting a new job when I leave so I've been very lucky.