Voluntary redundancy and unemployment benefit?

Dinah93

Hi,

one of my friends is in a jump or be pushed situation at her council, but is unsure if she would get any benefits if she takes voluntary redundancy, so I thought I'd ask you lovely people! If she takes voluntary she'd get around £7500, but if she waits for the axe to fall in about 8 months time she'd only get around £3000. She's worked for the council for 5 years full time, 3 years part time before that so always paid NI. Her husband earns £16,000 pa if thats relevant. She has a morgage and would use the redundancy to clear debts preferably leaving only a few hundred left.

Any advice would be welcomed.

allen35

Yes your friend should be entitled to contribution based JSA for 6 months regardless of redundancy payment/partners income but i would still seriously consider staying for 8 months whilst looking for alternative employment, you never know the council may have a re-think on redundancies in her department.

burtons

A bloke i work with went and seen the jsa to see if he could claim contribution based jsa if he took voluntary redundancy and he was told he couldn't as he was putting himself out of work, now he couldn't say to the jsa that he had been made redundant as the company is giving out letters to say that you except voluntary redundancy. If she don't like the job it's a good chance to get out but saying that if she takes redundacy how long will she take to get another job.

Dinah93

Aye I feared they'd say you'd put yourself out of work. I've never claimed any benefits except council tax exemption when I was at uni so I couldn't really advise her, but I know my ex used to waltz in and out of jobs like they were going out of fashion, but could never get JSA as he'd quit rather than be fired. I guess taking VR is a gamble in that the difference in level in payout is about 4 months salary, will it take longer than that to get a job.

allen35

burtons wrote: »

A bloke i work with went and seen the jsa to see if he could claim contribution based jsa if he took voluntary redundancy and he was told he couldn't as he was putting himself out of work, now he couldn't say to the jsa that he had been made redundant as the company is giving out letters to say that you except voluntary redundancy. If she don't like the job it's a good chance to get out but saying that if she takes redundacy how long will she take to get another job.

Effect on claiming benefits

If a client chooses voluntary redundancy, because s/he has been dismissed s/he will not be treated as having left work voluntarily.

Therefore is entitled to claim benefits relevant to their circumstances.

nimbo

when some people were offered VR where i am it would have had possibly bad side effects for things like Mortgauge protection....

unholyangel

http://www.tuc.org.uk/extras/jsasanctions.pdf

This means that a claimant will not be regarded as having left their job voluntarily if the contract of employment came to its natural end, if the employer ended the contract (except for reasons of misconduct), if there was a voluntary redundancy situation or the job ceased to exist - if the employer went into receivership, for example.


Also check out: http://www.redundancyexpert.co.uk/how-your-redundancy-package-can-affect-your-benefits.html