Voluntary redundancy to clear debts?

Muhren

There is the opportunity for some people to take voluntary redundany where I work. When it was announced this morning I didn't have any intention of putting my name forward but the more I have thought about it the more I have been thinking it could be the right thing for me.

My situation is I am 31 and single currently living at home with my parents whilst I repay my debts. As I have been with the company over 5 years I would be eligible for 12 months pay if I were to go down this route. This would pay the majority of my debt off but obviously I wouldn't have a job, so not sure if I am thinking too much about the short term benefits here.

I do currently work 44 miles away from my place of work so spend over £300 on petrol a month, so if, and I know it is a big if, I could get a job closer to home I could vastly reduce the amount spent on petrol.

What are peoples thoughts on this?

thecassman86

Hey

Usually i would advise people to stay away from redundancy if they're far away from retirement as the stress and potential inability to replace your job sooner could cause problems... But, with you living at home, it does give you that freedom to search for a job for a few weeks without the worry of bills coming in - and the fact you can get one closer to home is even more beneficial.

That being said, you mentioned that the redundancy would pay the majority of your debts - what would be left over? Have you considered which of your debts you'll pay off and, if you did, how you'd make the payments of the ones that would be left? Job Seekers Allowance may cover it, but you'd need to look into that. Hopefully you can get a replacement job fairly quickly and wouldn't need to worry too much about it but i think you should assume the worst - just to be prepared.

What is the nature of your work? Are you trained or experienced specifically for your work or would you consider your work quite "general"... The reason i ask is that finding a generic job in the current market isn't particularly easy; a skilled job i would imagine to be slightly easier. But i'm guessing there...

Muhren

Hi cassman,

I owe all my money to my mum and dad who bailed me out so I would have to talk to them about what they think I should do as well as they obviously have a vested interest, other than being my parents! I actually think by time I had worked my notice the money I would earn in those 3 months would allow me to clear my debt. I also have some money coming from some shares I hold with them, maybe a couple of grand.

I wouldn't say my work is very specailist as such as I don't think I have reallt fulfilled my potential in my current job. I gained a foundation degree with the company but haven't really used it since I have been here.

thecassman86

Muhren wrote: »

Hi cassman,

I owe all my money to my mum and dad who bailed me out so I would have to talk to them about what they think I should do as well as they obviously have a vested interest, other than being my parents! I actually think by time I had worked my notice the money I would earn in those 3 months would allow me to clear my debt. I also have some money coming from some shares I hold with them, maybe a couple of grand.

I wouldn't say my work is very specailist as such as I don't think I have reallt fulfilled my potential in my current job. I gained a foundation degree with the company but haven't really used it since I have been here.

All things considered then, if it was me, i'd probably put myself forward for voluntary redundancy. But, i'm saying that as a DFW who'd relish the opportunity to become debt free as quick as possible!!

I think you definitely need to discuss it with your parents though as it's possible there'll be a period where they won't receive payments while you look for another job. Although, if they've had a lump payment in between they might be fine with that. But yeah, either way it'll affect them and it's only fair that they are part of the loop in your decision.

The fact that you live with your parents and they're your only creditors puts you in a pretty enviable position when regarding voluntary redundancy!

Perhaps it'll give you a new opportunity to find a job that utilizes your undergrad degree in some way too. So, for me, i'd go for it... But take advantage of your 3 month notice period (which is quite a long one) and job-hunt like it's going out of fashion

Good luck, whatever you decide to do.

Indout96

Are you sure they would be paying you 12 months money for 5+ years with them ?
I have just been made redundant after 22 years and am only just getting over 12 months and that is over minimum for 22 years

Muhren

Indout96 wrote: »

Are you sur they would be paying you 12 months money for 5+ years with them ?
I have just been made redundant after 22 years and am only just getting over 12 months and that is over minimum for 22 years

Yep it is stated on our intranet. It is limited numbers with the decision on who goes down to HR I believe.

Indout96

Then in your position I would say go for it, there are jobs out there, within 2 weeks of the redundancies here I had another job lined up (higher pay but a little further ton travel each day), I finish here end of April and start new job 1st May
Good luck whatever you choose

diamondfan25

Hello!!!

I actually think your in quite a good position to be taking the redundancy. I know I would You only owe to your parents (pls don't take that as it only your parents) which to me is already a weight lifted (no banks etc ringing u demanding this & that & dreading the postie coming) like one of the comments above sit down & discuss, I'm sure they'd understand why you'd want to take redundancy & whatever your line if work, there will be a job out there for you (I'm a greedy sod & have 2 jobs)

If I had this opportunity I'd certainly do it

xx

Suseka

I must agree that is a very generous offer by your employers and if genuine, then you are in a good position. If it were me I would already be testing the market to see if there are jobs available closer to home (or not, as the case may be), before putting my name in the hat. Also do make sure you read through whatever the terms and conditions of the redundancy are very carefully - referring to the first point about the generosity of the package.

Muhren

Thanks I will definately look at the terms very carefully. I have about 3 weeks before the application has to be in so I will have a look to see what is about closer to home.

I spoke to my dad about it last week and he didn't seem to keen on the idea. For me I think it is a great opportunity as I have no ties or anyone to provide for, other than myself. My contract would finish at the end of June so would give me some time to find something else.

Danni-R

Hey,

I think its a great opportunity and you will have 3 months to be able to look for work, and I think because they made you redundant they have to allow you time to go to interviews?

I think as far as opportunities go to clear your debts, this is a pretty big one.

Speak to your folks though. They are my 'go to' people in times like this.

Down side. dont forget tax etc. Also, it might seem counter productive BUT with my company you can take part of your redundancy money as a pension contribution to save on tax.

Fingers crossed it works out for you. Then you can get to work on the ladies ;-)