Voluntary or compulsary redundancy

economic

Hi


my mum has been told there will be redundancies at her firm. she has been given the option to take volunteered redundancy. She has been a permanent employee for 5 years and contracting for a number of years before that.


Am I correct in saying if she doesn't opt for volunteered redundancy and becomes redundant through the compulsory way, she would be offered more severance on top of the statutory amount - since she has more then 2 years service at the firm? This way she is less likely to sue etc? or would it make no difference compared to if she took volunteered redundancy?


thanks

sangie595

economic wrote: »

Hi


my mum has been told there will be redundancies at her firm. she has been given the option to take volunteered redundancy. She has been a permanent employee for 5 years and contracting for a number of years before that.


Am I correct in saying if she doesn't opt for volunteered redundancy and becomes redundant through the compulsory way, she would be offered more severance on top of the statutory amount - since she has more then 2 years service at the firm? This way she is less likely to sue etc? or would it make no difference compared to if she took volunteered redundancy?


thanks

I can see no reason it would make a difference. Why would she "sue"? You actually have to have a case of something first.

Detroit

How much she would receive in redundancy pay above the statutory minimum would depend on her contract. It may be nothing as some employers pay only the statutory minimum.
Voluntary redundancy is treated as any other redundancy, so can't imagine a situation where she'd get less for volunteering.
The only possible reason she could get less is if in someway she was being pressured to hand in her notice ahead of the redundancy process. She should be careful not to do this, but wait for the correct process to be followed, including a formal request made for volunteers for redundancy.
She should contact ACAS or CAB for advice on her statutory rights and the process that should be followed, and check her contract for any additional entitlement.

TELLIT01

Often companies offer an enhanced package for those who volunteer for redundancy. I certainly wouldn't expect a better payout by staying and being made redundant.