Voluntary Redundancy - Advice needed!

Wadz

Hi all

We have recently been told that there may be cuts in our workplace. The have offered us voluntary redundacy pay which sounds quite good. The people who decided to take this will be given a payment equivalent to 12 months' gross pay (including any staff notice period). We have been given less than 2 months to decide whether to take this or not. If we stay and we are made redundant then it will be just 6 months gross pay.
Do people think this is a good offer? Also if I take this how long is it before I am allowed start looking for a job?
It also states that the payment may be some or all tax free any ideas about this anyone?

Thanks

isplumm

Wadz wrote: »

Hi all

We have recently been told that there may be cuts in our workplace. The have offered us voluntary redundacy pay which sounds quite good. The people who decided to take this will be given a payment equivalent to 12 months' gross pay (including any staff notice period). We have been given less than 2 months to decide whether to take this or not. If we stay and we are made redundant then it will be just 6 months gross pay.
Do people think this is a good offer? Also if I take this how long is it before I am allowed start looking for a job?
It also states that the payment may be some or all tax free any ideas about this anyone?

Thanks

I assume that the tax free bit will be the redunancy bit that the government says a company should pay - max of £310 a week I think & you get 1 week for every full year you have been there - once over 45 you get more ....

I guess you wouldn't be able to start a job until AFTER they make you redunant .... otherwise you will not get the money!

Sounds decent deal to me .... but then can you afford to be unemployed for a long time? What is the job market like for your skills?

Better experts than me will be along soon I am sure

Mark

Wadz

hi Mark

thanks for the reply.
i have been there for 3 and a half years. A lot of the colleagues are considering this offer. I have varied responsibility from admin, finance, teaching, IT and web site maintenace. i also have 5 years exeperiece in retail/customer service. Suppose if I cannot find a job any where can always get a job in a super market as they are doing well!
I am going to join a few agencies and see what is available and then take it from there.

Thanks

amibovvered

I recently accepted VR and the first £30,000 of redundancy money was tax free so I presume the same would be true in your case.

AFAIK you can start looking a job as soon as you leave

isplumm

amibovvered wrote: »

I recently accepted VR and the first £30,000 of redundancy money was tax free so I presume the same would be true in your case.

AFAIK you can start looking a job as soon as you leave

Hi

I would start looking now - just make sure you tell them you need to give notice.

Mark

getmore4less

Good offer?

Well as offers go it is very good.

with 3.5 years

Statutory would be 3 weeks capped at £380pw with the possibility of PILON.

Since this is a flat offer to cover all statutory payments then there is a good chance that the first £30k will be tax free IIRC that has been the case for others that have taken this offer(education establishments).

If under £30k 1 year tax free works out at about 1.5 take home so that gives you at least that long before the money runs out.


A couple of things I would check.

what is the proposed termination date?
What is happening to outstanding holidays? ( if any)
If I find another job can I leave early and still get paid.
(they may have to let you do this, one area that comes up a lot and there are mixed views).

You should be able to claim contributions JSA immediately you are terminated. so that will help a bit.

Start looking for a job now.

Depending on when you leave and how the payment is made and how much more taxable income there is this tax year there may be a tax refund due.
Look at the HMRC P50 form this may be worth doing and leaving the JSA claim for a month or two.

getmore4less

isplumm wrote: »

I assume that the tax free bit will be the redunancy bit that the government says a company should pay - max of £310 a week I think & you get 1 week for every full year you have been there - once over 45 you get more ....
Tax free is up to £30k of qualifying payments.
Statutory cap is £380.
Payments go up to 1.5 weeks for full years over 41.

I guess you wouldn't be able to start a job until AFTER they make you redunant .... otherwise you will not get the money!

THis may not be the case, you might be able to counter notice and still get the payments

Sounds decent deal to me .... but then can you afford to be unemployed for a long time? What is the job market like for your skills?

Better experts than me will be along soon I am sure

Mark

..............

Wadz

Wadz wrote: »

Hi all

We have recently been told that there may be cuts in our workplace. The have offered us voluntary redundacy pay which sounds quite good. The people who decided to take this will be given a payment equivalent to 12 months' gross pay (including any staff notice period). We have been given less than 2 months to decide whether to take this or not. If we stay and we are made redundant then it will be just 6 months gross pay.
Do people think this is a good offer? Also if I take this how long is it before I am allowed start looking for a job?
It also states that the payment may be some or all tax free any ideas about this anyone?

Thanks

Just read the small print again and it says the following
"One week's pay for each complete year of employment below the age of 41 but above the age of 22"
So if I stayed and then made redundant then I would only get 3 and a half weeks pay!

getmore4less

Wadz wrote: »

Just read the small print again and it says the following
"One week's pay for each complete year of employment below the age of 41 but above the age of 22"
So if I stayed and then made redundant then I would only get 3 and a half weeks pay!

It is complete years so you need to have one year over 41 for th eextra 1/2.


So are you getting a full year if you take VR and just uncapped statutory if you are then forced out later?

A jobs a job but unless you feel safe I would probably take the money and make it last.

Wadz

getmore4less wrote: »

It is complete years so you need to have one year over 41 for th eextra 1/2.


So are you getting a full year if you take VR and just uncapped statutory if you are then forced out later?

A jobs a job but unless you feel safe I would probably take the money and make it last.

In the letter we received it said that it would be the full years salary but that offer is on the table until 21 January. there is no certainty the job is safe. Taking the money and looking for a job sounds the safer choice as it gives an income for 12 months to find a job.

JVRMac

A similar thing has happened to me and I have been advised by my employers that if I start a new job within 30 days of taking my VR then I will have to pay tax on the whole package. Not sure if it's a redundancy thing or a VR thing?