Voluntary resignation package

Skeksis

I have just been informed that my employer is offering an attractive voluntary resignation package worth a guaranteed lump sum of 6 months worth of salary plus any remaining holiday paid for a limited period up to 31st July. I am very tempted to take up the offer as it would a) clear most of my debt and b) get me out of a job that I have absolutely hated with a passion for sometime! This would be in return for leaving fairly immediately. They are also advertising for voluntary redundancies at 1.5 times statutory redundancy pay, which isn't as attractive!

I may have something different in the employment line in the pipeline, but nothing definite, so it could be risky, but it would get me out of the rut I am currently in and give me the kick up the backside I need!

The communique I have had from my employer also states that they are reasonably certain that the resignation lump sum would be free of tax and NI up to £30,000 under current HMRC guidelines, but if it isn't that this portion would be repayable, so obviously I would need to be absolutely certain of this before I do anything.

Any advice is welcome!

Francesanne

Can understand why you're tempted but think you need to think it through, very carefully before you make a decision. I jumped at the opportunity but I'd been with my company over thirty fours years and I was in my mid 50's. I got a generous package and had no intention of looking for another job. You have to consider your age, your family circumstances and it's very,very hard at the moment to get another job. Whatever you decide, I wish you all the very best.

getmore4less

Are they offering a comprimise agreement?

They should pay for independant legal advice.

I don't see why the £30k would be repayable you may have to pay the tax though HMRC decide against you but unlikely if done properly.

If the severence part is more than £30k then look at the other options for reducing the tax liability like pension, especialy if you get another job and hit the 40% tax brackat in the year.


I would want this done in such a way that the voluntary element is not noted.

Skeksis

Thanks for the replies. Yes, they would pay for independent legal advice and no I don't think there is a compromise, but I was thinking of enquiring as to whether they could actually make me redundant with the 6 month salary lump sum, as I have unemployment income protection for 12 months as well, as I don't think many staff will go for either package in the current climate.

The one thing I am concerned about is if there isn't a big take up on either offer, they will start making redundancies anyway with just the statutory redundancy pay, therefore I will have missed out on over £8000.