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Need advice on Voluntary Redundancy
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# 1
mapleleaf1010
Old 12-09-2009, 12:47 PM
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Join Date: Aug 2008
Posts: 175
Unhappy Need advice on Voluntary Redundancy

Iím thinking about taking voluntary redundancy after 3 years with my employer, but I have to do a lot research and find out about my rights first.

My situation is:

Single, no children or dependents.
No debts apart from my mortgage.
A few thousand pounds in savings.
Iím in a permanent full-time job.
No second income.
The profession Iím in is in trouble and I want to do something different anyway, even though Iíll have a pay-cut.
Iím willing to have some part-time training at a college or distance learning.
Iím low maintenance and can live on little money, provided that I have enough to pay the mortgage and bills (even if that means having more than one job at a time).

Iíve never been unemployed before, so, Iím totally lost and my questions are very basic:

1. What would be the difference between redundancy and voluntary redundancy packages?

2. If I take voluntary redundancy, does that mean that I canít claim my mortgage protection insurance?

3. What are the short/long term pitfalls of taking voluntary redundancy?

4. Does it affect job seekers allowance?

5. Do I have to let the Job Centre know as soon as Iím officially told about redundancy? How long does it take to start receiving payments?

6. How much is the job seekers allowance per week?

7. How many hours per week am I allowed to work while on the dole?

8. How long can I be on the dole for? (Not that I intend to do so for very long).

9. After I start receiving benefits, how often do I have to go to the Job Centre?

10. Would I have some help towards Council Tax?

11. Iím open to suggestions regarding jobs that donít need very long training. Please let me know of any serious professions/websites that might be worth considering. I donít believe in Ďget rich quickí opportunities at all and I wouldnít be happy in a sales job either.

12. Any further useful websites regarding benefits, advice on redundancy, how to plan for the future, etc?

13. Once you know your monthly expenses, is there any section on this website that shows you how to calculate the equivalent yearly salary?


Many thanks for your help.
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# 2
seven-day-weekend
Old 12-09-2009, 3:18 PM
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Quote:
Originally Posted by mapleleaf1010 View Post

1. What would be the difference between redundancy and voluntary redundancy packages?

2. If I take voluntary redundancy, does that mean that I can’t claim my mortgage protection insurance?

3. What are the short/long term pitfalls of taking voluntary redundancy?

4. Does it affect job seekers allowance? It may do if it is seen as intentionally giving up your job. Your JSA may be sanctioned for up to 26 weeks.

5. Do I have to let the Job Centre know as soon as I’m officially told about redundancy? How long does it take to start receiving payments? Tell them as soon as you are unemployed

6. How much is the job seekers allowance per week? £50.95 per week if under 25; £64.30 otherwise, for a single person

7. How many hours per week am I allowed to work while on the dole? Less than 16, but they will deduct any money earned from your JSA apart from a fiver

8. How long can I be on the dole for? (Not that I intend to do so for very long). Six months on Contributions-based JSA, indefinitely on Income-based

9. After I start receiving benefits, how often do I have to go to the Job Centre?
Usually once a fortnight to sign on plus actively seek work


10. Would I have some help towards Council Tax? If JSA was your only income and you had savings between £6k-£16k, yes, on a sliding scale. Below £6k in savings you would not have to pay anything.

11. I’m open to suggestions regarding jobs that don’t need very long training. Please let me know of any serious professions/websites that might be worth considering. I don’t believe in ‘get rich quick’ opportunities at all and I wouldn’t be happy in a sales job either.

12. Any further useful websites regarding benefits, advice on redundancy, how to plan for the future, etc?

13. Once you know your monthly expenses, is there any section on this website that shows you how to calculate the equivalent yearly salary?


Many thanks for your help.
I've answered all the ones I know about in blue
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Last edited by seven-day-weekend; 12-09-2009 at 3:28 PM.
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# 3
mapleleaf1010
Old 12-09-2009, 6:49 PM
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Join Date: Aug 2008
Posts: 175
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Quote:
Originally Posted by seven-day-weekend View Post
I've answered all the ones I know about in blue
Many thanks.
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# 4
Tr@cker
Old 13-09-2009, 8:10 AM
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Voluntary redundancy wont stop you getting JSA-see the TUC website-but those who retire with a company pension may get a reduced rate.

In your case i'd say you would get the full £64 odd.
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# 5
roversbabe
Old 13-09-2009, 5:01 PM
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Default

Quote:
Originally Posted by mapleleaf1010 View Post
Iím thinking about taking voluntary redundancy after 3 years with my employer, but I have to do a lot research and find out about my rights first.

My situation is:

Single, no children or dependents.
No debts apart from my mortgage.
A few thousand pounds in savings.
Iím in a permanent full-time job.
No second income.
The profession Iím in is in trouble and I want to do something different anyway, even though Iíll have a pay-cut.
Iím willing to have some part-time training at a college or distance learning.
Iím low maintenance and can live on little money, provided that I have enough to pay the mortgage and bills (even if that means having more than one job at a time).

Iíve never been unemployed before, so, Iím totally lost and my questions are very basic:

1. What would be the difference between redundancy and voluntary redundancy packages? VR packages are usually enhanced - go to the directgov website for statutary package information.

2. If I take voluntary redundancy, does that mean that I canít claim my mortgage protection insurance? Usually, you can't claim mortgage protection as you have chosen to take redundancy, if it was compulsory redundancy, this would be different - check your policy as this will give you the exact info.

3. What are the short/long term pitfalls of taking voluntary redundancy? I've found a job straight away so can't really answer this. I have no regrets so far

4. Does it affect job seekers allowance? If you've been working and paying NI for the last 2 years, you'll be able to claim contribution based JSA

5. Do I have to let the Job Centre know as soon as Iím officially told about redundancy? How long does it take to start receiving payments? Contact the Job Centre as soon as you leave work, no idea on the second question, perhaps you can get advice on this one on the benefits board.

6. How much is the job seekers allowance per week? 64 ish (I think!)

7. How many hours per week am I allowed to work while on the dole? not sure

8. How long can I be on the dole for? (Not that I intend to do so for very long). 6 months for contribution based JSA, depends on your savings etc for income based JSA

9. After I start receiving benefits, how often do I have to go to the Job Centre? fortnightly, plus you have to be actively seeking work

10. Would I have some help towards Council Tax? try the benefits board for this one, not sure TBH

11. Iím open to suggestions regarding jobs that donít need very long training. Please let me know of any serious professions/websites that might be worth considering. I donít believe in Ďget rich quickí opportunities at all and I wouldnít be happy in a sales job either. Careers advice service website - it's on directgov, I've found this really useful when looking for ideas for a complete career change.

12. Any further useful websites regarding benefits, advice on redundancy, how to plan for the future, etc? this one - also BBC website, careers advice and directgov

13. Once you know your monthly expenses, is there any section on this website that shows you how to calculate the equivalent yearly salary? search salary checker on Google, there's loads


Many thanks for your help.
Hope this helps, I've just taken VR myself - no regrets so far! I've put my answers (to the best of my knowledge) in red.

Best of luck with what you decide.
Official DFW Nerd Club - Member no. 027

Debt free: 6th April 06 Proud to have dealt with my debts
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# 6
getmore4less
Old 13-09-2009, 5:36 PM
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Join Date: May 2007
Posts: 18,749
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AIUI there is no difference legaly from employment law point of view

anyone know otherwise?

You are terminated for reason of redundancy either way.

So make sure the letter just says something along those lines, there is no reason to mention how this came about.

The voluntary nature of the situation should make no difference it is just part of the consulting and package negotiation that everyone should be doing when being terminated as redundent or with a CA for any reason.
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