Voluntary redundancies capped at 12 years - is this allowed?

MattMattMattUK

It could be one of several things, have they said that no one with more than twelve years service can take voluntary redundancy, or just that it will only be enhanced up to twelve years and then statutory only for any further years?

The other side might be that they have run the numbers and that everyone with 12+ years of service is close to or over retirement age and so likely to go of their own accord at some point soon anyway. Though remember that outside of a few specific professions compulsory retirement no longer exists.

Throwaway1

MattMattMattUK said:

It could be one of several things, have they said that no one with more than twelve years service can take voluntary redundancy, or just that it will only be enhanced up to twelve years and then statutory only for any further years?

The other side might be that they have run the numbers and that everyone with 12+ years of service is close to or over retirement age and so likely to go of their own accord at some point soon anyway. Though remember that outside of a few specific professions compulsory retirement no longer exists.

There’s definitely no enhanced and his role doesn’t have compulsory retirement. I’m certain that they’ve ran the numbers and decided that they want to pay as little as possible.

People retiring at a later date won’t really bother them either way. They need to get rid of a bunch of the factory workers now as they’ve lost a contract and so need to downsize their staff. If they win it back later or get a new one they will just hire more again. My dad is on a permanent contract but they pretty much only employ agency staff now.

Hoenir

Throwaway1 said:

Edited to add: the redundancy pay would be statutory pay.

Voluntary schemes normally offer enhanced terms. Otherwise there'd be few takers. 18 weeks maximum of statutory redundancy pay isn't an attractive pay off. Might as well drag the process out for longer while receiving full pay and benefits.