Redundancy or resignation?

ghostgirl_2

My employer has asked for volunteers to 'resign' from employment with the Company. The offer includes a one-off lump sum incentive payment, the first £30,000 of which is tax-free. But I've been looking at the HMRC Website, and it seems to be saying that £30,000 tax-free is only available on redundancy lump sum payment, not upon voluntary resignation.

Can anyone clarify this for me please? Thanks

Pitchshifter

Don't get confused between resignation and voluntary redundancy. If you are part of a redundancy, it is between you and the employer if you choose to volunteer to leave, it's still redundancy, and if they offer you a decent package that's good.
From your post it sounds like they are offering slightly more money if you choose voluntary redundancy to make their process a bit quicker and easier, which is understandable. £30K + seems pretty good to me. I'd take it without a second thought (based on what you've said).If it's redundancy (voluntary or otherwise), the employer is terminating the contract and must give notice.

Resignation is just that: The employee is terminating the employment contract and must usually give notice. thats it. If an employee just resigns then an employer is not going to offer a penny more than they are obliged to. DO NOT resign or write any letter to that effect.


How long have you worked there?

marybelle01

Voluntary redundancy isn't redundancy at all. It is a mutually agreed termination of contract. You offer to leave and the employer agrees. And both sides have to agree. The employer does not have to accept you volunteering. Totally different from redundancy where you don't volunteer to leave at all. It may be better for you and for the employer to agree a mutually agreed termination, but look at the big picture before you decide. Although the benefits agency accept voluntary redundancy (or they used to, but you should check as I may have missed changes), some insurers do not, so your mortgage protection etc may not be paid out if you volunteer. If you haven't got any, then it may make sense, but if you have you may be volunteering to spend that extra money paying your bills!