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….

I’m in a similar situation and have opted for voluntary redundancy and I ‘m just waiting to hear back. I really like where I work and the team is fantastic. I have all the same worries about finding.another role to fit around childcare but my children are older and my husband has quite a bit of flexibility. The thing that has pushed me into it was looking at the overall picture for the organisation, they are looking at around 20% reduction in headcount in a pretty small team so it will have a massive impact going forward and I don’t think that will be the end of it. I’m in finance so the requirements placed on me would increase hugely even without a reduction in the team. I’m scared about the future but it does open up opportunities.

Have a good think about where the organisation and the sector is going. Good luck

If they’re making cuts, then things won’t stay as you know them forever.
You should get notice pay and holiday pay on top. At 10yrs service I’d be surprised if you’re on a months notice. I’d take the money, I’d find a job full time - make it work for 6 months then put in a flexible working request.

Lucky you! VR in universities will be around 6 months salary - including for 30 years service.

To those saying redundancy offered isn’t enough, I think 6 months pay, tax free is the norm offered and more than they probably have to. A friend has recently taken redundancy on a similar package, 3 months ago, thinking she would get another job straight away, but she’s applied for several jobs and no offers, not even an interview yet. OP if you really don’t like your job, then maybe I would take the redundancy, spend the summer with your DC whilst applying for jobs, as long as your DH salary can pay all the bills and mortgage.

I took redundancy at 50. Different situation, DH had had a massive coronary, and had minimal sickness pay. My job was moving, and I couldn’t face the commute, I also felt I needed to be available at home easily. I got a job immediately, in local government, at a fairly basic clerical level, quite a drop in salary.

Having a lump sum in savings made me feel more secure. I paid off our credit cards, which had built up a bit, knocked a bit off the mortgage, and set a budget. The new job was pretty stress free, and within a couple of years I was promoted. I ended up earning a similar salary to my previous job. I’m so glad I made the move.

OP look at the public sector vacancies in your area, you might be surprised what is available.

£20K isn’t much of a rainy day fund when you have a family to support and a mortgaged house to maintain. I would wait to see what happens about a compulsory redundancy, meanwhile applying for suitable jobs. Also look at your current expenditure to see what you can cut back on so you can save because having no savings is a precarious situation. I get the anxiety you have of having no fall back in the form of savings. But you need to look at the bigger picture (a really tough economy).

I do use after school and holidays clubs. I’m not against them. However, ideally I don’t want my kids being in school from 7.30am- 6.00pm 5 days a week. If I have to take a lower paid, part time job in order to avoid that then I am happy to do so.
And £5 per child for after school clubs/holiday clubs????? 😂😂😂😂😂

Yes it's from a university! They were pretty desperate for people to take it so the package was too good to turn down.

The longest servers will get around £150k.

Couple of things to consider - what would your redundancy package look like if it was enforced? How much difference would it make in £s terms? Is it safer to sit tight in this economic environment given we won't really see the full impact of the NI increased for a few months?

How would the dynamic change between you and your husband? Don't be overly confident about minimum wage jobs - they're the ones being hit by the NI changes and many will deem you to be too senior. It could take you months and months to find work. (It might not but you have to consider that risk). Whilst you're job hunting, is your husband happy and mentally strong enough to shoulder the full weight of the financial burden of running a home and feeding a family? Would your husband still respect you if you're sitting at home whilst your kids are at school and he's at work? Will the relationship survive a shift to a position where you no longer have a career drive or just simple conversation that involves topics beyond hoovering and picking kids up?

Having savings in the bank is not the be all and end all if it adds the significant burden of risk to your household and creates a different dynamic between you and your husband.

I actually had a really similar situation recently except I don't hate my job and I work full-time - £25K redundancy offer on a £40K salary. I spent a week looking up all the other jobs available around me that I'd be up for doing - even going down a bit in salary. And came up with... not much at all. So I'm still at my job. Likely will be restructured soon but I know my workplace backwards and forwards so don't might being redeployed.

For us, it would be really problematic to drop £10K or more in salary and the £25K wouldn't last long in that situation. We both need our jobs to keep the house and the kids - plenty to look at if we really have no other options but it would have to be compulsory redundancy, one of us getting ill, that sort of thing. I don't want to put that kind of pressure on us if I have any other option.

I’d start by doing some research. What kind of work are you willing to do? Everyone always says there’s lots of care work going. Is that something you would do? If so ring the local providers and have a chat about availability and hours.

Are there temp agencies in your area? Ring them too for a chat.

Look at the job market for your skill area generally.

If you are confident you can get work fairly quickly, even if it’s just temp work or an in-between to tide you over job then I’d seriously consider it.

Ok, your character is slipping out a bit. Our club is £5/hr and siblings get discounts. A £40k salary would be over £19/hour, but must be much higher as you are so part-time. You're claiming breakfast and after school clubs cost more than that? More than £10/hr/child? Amazing.

7.30-6pm * 5 days is 52.5 hours. Nobody suggested you should work 52.5 hours. 35 hours + half hour commute each way is only 40 hours per week. Remember you also have another parent on-hand who can look after their own kids too. Typically parents do a couple of longer days each, plus some shorter days. The kids then get a couple of sessions in clubs around that, where they have fun.

It’s a great package! Statutory would be a week for every year, so total £7,650. And I’m not sure they have to pay the 1st 2 years so it could be less….

They do have to pay the first two years but nevertheless it’s a lot more than statutory which is a week per year as you say, but the week is capped. There will be notice and any outstanding holiday entitlement on top (taxable). I don’t know why so many people are saying it’s a poor offer, it’s more than 6 months full time pay given it’s tax free.

I did that, fifteen years ago after 25 years in the civil service. It was a good package and I'd do it again.

The good

The job had become tedious, with few development prospects. I'd learned new infinitely transferable skills and left with great memories, lasting friends.

Since then I've had opportunities and experiences I'd never have had if I'd stayed. My CV looks amazing ...

The bad

I'd never had to apply for a job since uni and I didn't have the first inkling of how to begin to think about trying to do it. Not a clue. And meanwhile the internet had happened and I was mystified. Because my employer had failed to give us one second of support and training how to survive out here.

If there is outplacement training available - grab it.

Polish your cv with all the keywords relevant to your profession and role you want.

Polish and use your linkedin to leverage your network - that's where the jobs are, not on the job sites.

And the ugly ...

Not only was I redundant, and unemployed, I was also peri menopausal, and I crashed. I was grieving the end of something that had been half my life, no longer able to describe myself in my accustomed terms. Who and what even was I. Everything had changed.

Yes, I had a cushion of cash. But a big chunk went on credit card debt and I just wallowed in the rest until one day I realised ... It's nearly all gone.

Because I'd failed to be prudent and to plan and set goals.

I had a huge piece of luck when a recruiter found me online and I got a six month contract where I reinvented myself and I'll always be thankful to him. That's happened three times since then. So make yourself VISIBLE.

I started my own business too - I highly recommend EVERYONE do that (the tax expenses, the extra personal development, contacts, extra income). Seriously, do it. You can be an employee AND self employed at the same time.

I had a brilliant 18 months contract that ended a year ago. I did a £5K month once during that, too.

Today, I'm having difficulty paying my mortgage.

It's very very difficult out here. Brilliant people on LinkedIn are shaken by how hard it is currently to get a new role.

Ageism is rife. Be strategic how you compose your CV etc if you're over 40.

Keep your wits about you. That money will flood out of your hands. Start looking for a new job NOW - the practice of applying and interviewing will be valuable. Be aware of your mental, emotional and physical state and be kind to yourself if you do go ahead.

All the best.

What is your actual salary? (I can’t work out if £40k FTE or you are getting £40k) and what do you currently do with your salary, assume not save it given you have no savings, so how do you plan to live while you find a job and then take a £15k pay cut?

You talk about putting the money in an ISA but I don’t see how the money won’t be needed?

Yes, the months notice is probably if employee gives it. If employer gives it, as in a redundancy situation, it will be minimum one week per full year served

Take it! a year's wage (I assume your salary is 40K pro rata) tax free is a good deal.

Also when companies start making voluntary redundancies it could be that compulsory redundancies are next so you might end up losing your job anyway and getting a less favourable pay out in a few months...

I hate my current company and I would take this offer with a big smile on my face!

Oftentimes, employers will pay notice in addition. Not always though.

I turned down be because despite good days I wasn’t sure dh would still respect me

Not everyone gets an enhanced package and the statutory amount is capped.

It's really not.

Employers don't pay severance or redundancy pay to employees who have been there less than two years.

Yes, around 6-7 months' salary, tax free up to a certain high threshold. That's really good, it will last nearly a year. Why would it be higher? That defeats the purpose of VR/VS, meaning many, many more jobs would have to go to meet savings targets...

She said £5 per hour per child, which is correct.