Voluntary Redundancy advice.

getmore4less

Companies can pay out whatever they want.
if it exceeded the statutory levels  it would be an enhanced package  not a statutory one.

Comms69

getmore4less said:

Companies can pay out whatever they want.
if it exceeded the statutory levels  it would be an enhanced package  not a statutory one.

Right, so it's not capped.

Thrugelmir

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

 VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

The employer can decline an application for VR. There's no right to be accepted. 

Mickey666

Thrugelmir said:

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

 VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

The employer can decline an application for VR. There's no right to be accepted. 

Of course, but imagine the effect on employee morale within the company if the company grants some VR but not others - payoffs for unwanted employees but no such rewards for 'valued' employees!  The whole area is a minefield for companies.

Thrugelmir

Mickey666 said:

Thrugelmir said:

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

 VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

The employer can decline an application for VR. There's no right to be accepted. 

Of course, but imagine the effect on employee morale within the company if the company grants some VR but not others - payoffs for unwanted employees but no such rewards for 'valued' employees!  The whole area is a minefield for companies.

Not a question of being valued or not. When restructuring a business the desired outcome is to be leaner and fitter. While still having the capability to operate and function normally.  VR is not a reward though many do grab the opportunity to leave. A secure job with benefits is worth far far more in the longer term. As many subsequently discover. The grass isn't always greener. Permanent jobs in a downturn can be hard to find.  

Tyton01

Its is a minefield like you say  A lot firms will first  lay off people  where they receive the least In terms of redundancy pay out e.g  someone young  on zero contract and worked less than 2 years. I know older people  who are financially well off who want to take voluntary redundancy  as they dont need the money  and are only doing  the job as something  to do but  firms wont accept  as they have to pay out more for older staff who have a longer employment service. Im not saying all  companies do It this way but to save money I bet a lot will  

lincroft1710

Mickey666 said:

Thrugelmir said:

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

 VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

The employer can decline an application for VR. There's no right to be accepted. 

Of course, but imagine the effect on employee morale within the company if the company grants some VR but not others - payoffs for unwanted employees but no such rewards for 'valued' employees!  The whole area is a minefield for companies.

A similar thing happened in the government department I worked for. They needed to reduce staffing levels so asked for volunteers for early retirement, the successful applicants would be paid their full enhanced pension plus a generous lump sum. Unsurprisingly it was oversubscribed, so many long serving employees had to continue working.

Mickey666

Thrugelmir said:

Mickey666 said:

Thrugelmir said:

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

 VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

The employer can decline an application for VR. There's no right to be accepted. 

Of course, but imagine the effect on employee morale within the company if the company grants some VR but not others - payoffs for unwanted employees but no such rewards for 'valued' employees!  The whole area is a minefield for companies.

Not a question of being valued or not. When restructuring a business the desired outcome is to be leaner and fitter. While still having the capability to operate and function normally.  VR is not a reward though many do grab the opportunity to leave. A secure job with benefits is worth far far more in the longer term. As many subsequently discover. The grass isn't always greener. Permanent jobs in a downturn can be hard to find.  

I beg to differ about the 'being valued' thing.

I once worked for a very large computer company that had never, ever, laid off any employee in its entire history.  In the early 1990s it was struggling and it was a big culture shock that it started to reorganise and make staff redundant.  The shock of the first wave of redundancies was somwhat ameliorated by the generous redundancy packages - a colleague got 18 months full salary having only been employed for six years!  Subsequent rounds of layoffs were less generous.   I understand the final round was statutory minimum, though I had left before then - sadly not redundant.

The general feeling among many staff was that the first employees to be 'let go' were the least valuable ones to the business, yet they were given the highest redundancy packages.  Subsequent rounds 'let go' more valuable staff on lesser packages.  It really wasn't a nice place to work any more.  How the mighty can fall.

Thrugelmir

Mickey666 said:

Thrugelmir said:

Mickey666 said:

Thrugelmir said:

Mickey666 said:

Comms69 said:

Mickey666 said:

Comms69 said:

JReacher1 said:

Comms69 said:

Turbo_Ben said:

thebrexitunicorn said:

Your employment is terminating on 31 October, no notice period.  However, if you started on 1st November and are finishing on 31st October that will be exactly six years service (1st Nov - 31st October is one year exactly).  Your statutory redundancy should therefore be calculated on six completed years of employment.  It doesn’t matter whether the redundancy is voluntary, the statutory entitlement still applies. 

Can they terminate my employment without notice? I thought I was entitled to 1 week notice for every year worked? What little information I have been able to find suggests that, even if payed in lieu, my termination date is after the 5 weeks.

No-one, NO-ONE agrees to voluntary redundancy which is the same as the stat minimum. 

So really no idea why youve done this?!

That’s not true. 

If you’re thinking of leaving your job and you are offered the chance to apply for redundancy at stat minimum then it makes sense to request it. If you don’t agree they may not select you for redundancy at all. 

I suppose that's a fair point, but still - VR is more than stat in 99/100 times. 

But why would a company pay more than statutory rules in a case of VR?  

Because it's often a good way of getting rid of expensive employees. VR doesnt have any standards to meet, so there's no need to go through consultation etc. 

 VR also has the disadvantage of ‘rewarding’ wanted employees to leave as well as the unwanted ones, so it can be a risky strategy for many companies.

The employer can decline an application for VR. There's no right to be accepted. 

Of course, but imagine the effect on employee morale within the company if the company grants some VR but not others - payoffs for unwanted employees but no such rewards for 'valued' employees!  The whole area is a minefield for companies.

Not a question of being valued or not. When restructuring a business the desired outcome is to be leaner and fitter. While still having the capability to operate and function normally.  VR is not a reward though many do grab the opportunity to leave. A secure job with benefits is worth far far more in the longer term. As many subsequently discover. The grass isn't always greener. Permanent jobs in a downturn can be hard to find.  

I beg to differ about the 'being valued' thing.

I once worked for a very large computer company that had never, ever, laid off any employee in its entire history.  In the early 1990s it was struggling and it was a big culture shock that it started to reorganise and make staff redundant.  The shock of the first wave of redundancies was somwhat ameliorated by the generous redundancy packages - a colleague got 18 months full salary having only been employed for six years!  Subsequent rounds of layoffs were less generous.   I understand the final round was statutory minimum, though I had left before then - sadly not redundant.

The general feeling among many staff was that the first employees to be 'let go' were the least valuable ones to the business, yet they were given the highest redundancy packages.  Subsequent rounds 'let go' more valuable staff on lesser packages.  It really wasn't a nice place to work any more.  How the mighty can fall.

From a business perspective what's planned may not be sufficient. For a whole variety of reasons. I've been involved in exercises where everything was attempted over an extended period of time to keep the company afloat and trading.  Unfortunately to no avail. Those of us left standing on the bridge. Received little more than the statutory entitlements and our P45's from the administrator. That's life. Nothing personal. 
Correspondingly seen good people jump ship. Only to meet up 2 years later to find that they've struggled even to find temp work. Their regret being those 2 extra years in the DB pension scheme and salary would have been worth far far more.