Voluntary redundancy information
How voluntary redundancy works
The employer first collectively informs the entire staff or the department involved of their intentions or the need to make redundancies. Normally they initially leave the option open for staff to volunteer for redundancy. This may be far more costly to the employer due to the fact that people that have been with them longer could take advantage of this redundancy payments offer. However this can offset the feeling of low morale among younger staff that may feel they are in more need of employment. It can also circumvent the company from entering into legal action. This could be costly and possibly cause the company into further difficulty making further redundancies likely and often not voluntary
Once the company has received voluntary applications they must give careful consideration to the actual needs of the company in what value each individual that has applied contributes. The process of offering voluntary redundancy to all staff in the first instance also offers other problems. Imagine if your entire department has been offered voluntary redundancy and all the senior employees for what ever reason decided to except the offer and request consideration for voluntary redundancy. This scenario would not only be detrimental to the employer but also to the employees as a whole department of less experienced people could adversely effect the companies future.
For these reasons it is important for the employee to understand that voluntary redundancy may be offered to all but the employer is under no legal obligation to accept your redundancy request. So meeting the criteria set out for redundancy does not nesiccerialy means you will be accepted for redundancy of the voluntary type.
Having said this voluntary redundancy by and large is usually accepted by companies, as this was the aim of offering it in the first place. But please remember that the company will calculate your worth to them in the interests of the business as a whole which is still based on someone’s calculation which in turn could be discussed and possibly negotiated.
Voluntary redundancy packages may cost companies a lot of money and are usually more expensive than statutory redundancy packages. Offering voluntary packages can go towards keeping morale high in the remaining staff and quite often there will be a number of people who were considering moving jobs or taking early retirement.
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