Voluntary Redundancy

Imp32

Am looking for some advice in connection with voluntary redundancy, specifically on whether or not to take it.

I've been in the same job with the same company for approaching 15 years, but of late have been very miserable with the stresses of the job.

The company I work for is in the middle of a consulatation process for selecting employees for compulsary redundancy, but are offering voluntary redundancy packages as a means of mitigating the numbers chosen for compulsary.

I could survive with a combination of the redundancy money, and savings for up to a couple of years with no other income, but must confess making the decision to leave is a very tough one, especially as by today's standards, my current job it is well paid, circa double the national average with a company car, final salary pension, healthcare.

Qualification wise, I only did A level standard qualifications way back in a generalised subject applicable to the industry I'm currently in, although I guess I've accrued transferable skills along the way.

I would certainly be willing to re-train, but I really don't know what in as identifying a new career path to take is not easy.

Would be great to have some advice, or hear from anyone else facing the same quandry.

getmore4less

Is the Voluntary package enhanced over the compulsory one?

How much are they giving you over the statutary redundancy payments?

Will they pay PILON or expect you to work the 12weeks notice.

Will they be enhancing the pension in any way?


Is there a chance that some of what you do(the good bits) could be "contracted out" back to you on a part time basis less stress and makes the money go further.

COuld you use this restructuing to change your job so it is less stressfull and more enjoyable, eg: is there someone else that wants to go that has a job you would like to do.


I would want more than a couple of years of backup money.
with 15 years and say a package of 2 weeks per year and 12weeks PILON thats about 57 weeks take home pay, if well paid you may be able to live on a lot less than your current take home so just the redundancy could last 2-3+ years without dipping into current savings, longer if you got anything that created some income.

What ongoing commitments/debts do you have, eg is there a mortgage or is this allready paid off, what is you minimum spendpm if you cut back everything?


The other assesment to make is how long will the company last, if it is going down then make sure you are not part of the last round where there is no money left.

Imp32

Thanks for the reply...

The severence package is the miminum in every sense if selected for compulsary. i.e...

£350/wk in multiples relative - on a sliding scale - to years served and age.
plus, notice pay at the rate of 1 weeks pay/year served up to a maximum of 12 weeks. Working the notice period is 'unlikely' but subject to the director's discretion.

...taking voluntary is incentivised by increasing the statutory by roughly 40%. PILON or notice pay would be the same.

Pensions as far as I'm aware would be frozen once employment ceases.

As far as restructuring my role, that wouldn't really be an option. It's an all or nothing type job tied to a specific set of responsibilities that need to be completed in very rigid timescales - that are never long enough (this is the stressful bit). It's a highly corporate and competetive environment, where profit is put above people (another stressful bit).

My primary goal has been remuneration previously, however I now understand that whilst important, is not the be all and end all. I'm now of the opinion, that as long as bills are paid, including the mortgage, job satisfaction is more important than 'status' where every last ounce of energy goes into acheiving that status.

I have no debts other than the mortage which is roughly £85K remaining. My monthly spend I'd guess would be about £1500 max on everything.

The company I work for has considerable cash reserves and is highly unlikely to go belly up.

henm01

Imp32 wrote: »

Thanks for the reply...

The severence package is the miminum in every sense if selected for compulsary. i.e...

£350/wk in multiples relative - on a sliding scale - to years served and age.
plus, notice pay at the rate of 1 weeks pay/year served up to a maximum of 12 weeks. Working the notice period is 'unlikely' but subject to the director's discretion.

...taking voluntary is incentivised by increasing the statutory by roughly 40%. PILON or notice pay would be the same.

Pensions as far as I'm aware would be frozen once employment ceases.

As far as restructuring my role, that wouldn't really be an option. It's an all or nothing type job tied to a specific set of responsibilities that need to be completed in very rigid timescales - that are never long enough (this is the stressful bit). It's a highly corporate and competetive environment, where profit is put above people (another stressful bit).

My primary goal has been remuneration previously, however I now understand that whilst important, is not the be all and end all. I'm now of the opinion, that as long as bills are paid, including the mortgage, job satisfaction is more important than 'status' where every last ounce of energy goes into acheiving that status.

I have no debts other than the mortage which is roughly £85K remaining. My monthly spend I'd guess would be about £1500 max on everything.

The company I work for has considerable cash reserves and is highly unlikely to go belly up.

Hi I was/am in the same situation having worked for a company over 20 yrs etc. I decided to take the VR as the redeployment options were based in central London.

I have less than 8 weeks to go and am now really scared as to what the future holds. I could survive a couple of years on the money but really unsure what direction to take for the future.

I have been offered a college place starting Sept but now getting cold feet.
Another job has come up at work and I am thinking of applying for it but will kiss goodbye to the redundancy money.

Is job security better than being greedy and taking the cash?

Imp32

henm01 wrote: »

Is job security better than being greedy and taking the cash?

This is mainly the question I'm struggling with.

Do you enjoy your job/potential new job?

I guess like everyone else, I go through peaks and troughs as regards enjoyment. Just lately - perhaps the last 6 months to a year - pressure has mounted to the point where it's affected my health. Typical overstress symptoms: sleep problems, feelings of constantly 'pushing an elephant up the stairs', anxiety etc. Not helped by working with certain colleagues whose ego's are very much to the fore.

Part of me feels I need out asap, part wants to stay. But ineveitable questions pop up. Is the grass greener somewhere else, will I be able to cope with a college course (I'm mid 30's) having been out of education for years. How will the drop in income affect me over and above the practical sense. Will the extra time available whilst working out the next move be liberating or debilatating.....etc etc ad infinitum

In addition, part feels that the opportunity for taking voluntary redundancy has arrived at just the right time.

:huh:

tocsin

My personal opinion - only jump when you're sure where you're going to - another job, study leading to a new career, franchise, whatever...

I waited until I was eligible for an early retirement offer - less than half the cash, but a pension until I pop my clogs. You still have to plan what you intend to do, but the pension sure removes a lot of the worry! :j

getmore4less

Imp32 wrote: »

Thanks for the reply...

The severence package is the miminum in every sense if selected for compulsary. i.e...

£350/wk in multiples relative - on a sliding scale - to years served and age.
plus, notice pay at the rate of 1 weeks pay/year served up to a maximum of 12 weeks. Working the notice period is 'unlikely' but subject to the director's discretion.

...taking voluntary is incentivised by increasing the statutory by roughly 40%. PILON or notice pay would be the same.

Pensions as far as I'm aware would be frozen once employment ceases.

As far as restructuring my role, that wouldn't really be an option. It's an all or nothing type job tied to a specific set of responsibilities that need to be completed in very rigid timescales - that are never long enough (this is the stressful bit). It's a highly corporate and competetive environment, where profit is put above people (another stressful bit).

My primary goal has been remuneration previously, however I now understand that whilst important, is not the be all and end all. I'm now of the opinion, that as long as bills are paid, including the mortgage, job satisfaction is more important than 'status' where every last ounce of energy goes into acheiving that status.

I have no debts other than the mortage which is roughly £85K remaining. My monthly spend I'd guess would be about £1500 max on everything.

The company I work for has considerable cash reserves and is highly unlikely to go belly up.

15*350*1.4=£7350 + 12weeks PILON.

How many weeks take home is £7350 that + 12 is the break even point.

One key question is how likely is a compulsory if you don't take the voluntary?

Since you will have to get something sooner rather than later then it is a trade off with taking the money and hoping to get something before the money runs out or staying and looking.

Not an easy one