Voluntary redundancy offer after 3 months employment

ad1927 · 3 December 2019 at 8:16PM

I left a company after 22 years employment joining a new company.

During the interview (some 5 months ago) I specifically asked if there were any redundancies or concerns in the near future, to be told there were not. I researched the company, and saw that they made some people redundant a few years ago. The company also had a new contract with a major company, so I had no concerns.44

Today the company announced there would be redundancies 40 people out of 200. To cut costs, they want people to take it voluntarily. The company "MAY" then go for compulsory redundancies.

The "super" package is essentially statutory redundancy (except not capped, so it's weeks multiplied by full week's wage) plus notice plus 10%.

Although I have been there just 3 months, my calculation would pay me 3 weeks wages plus 4.3 weeks notice. It works out at about £6k.

However, I like the company, they offer great packages, and I am hoping that enough people take the voluntary redundancy. I am also thinking that if, say, 12 people take it they may leave it at that.

My question is, if I decide to hold out I will not get the same redundancy package (probably just my notice period). But, I would rather hold on... but is it expected that I will be made redundant (if it comes to compulsory redundancies) because of last in first out. If last in first out is the more common practice then, to my mind, it would make sense to take the voluntary package and have 3 months wages in the bank to find something in the new year.

getmore4less · 3 December 2019 at 10:00PM

Last in first out is no longer common practice

It is quite early in employment to have worked out the pecking order to know where you are to know if you could go if not enough VR, even your bosses might not know.

As for recruitment while there are pending cutbacks, depending on the type of company that is not unusual.

Recruitment prior to getting rid of dead wood is a strategy.

Undervalued · 4 December 2019 at 4:18PM

There is no legal entitlement to redundancy pay with less than two years service. So your only entitlement is to your contractual notice and any accrued but untaken holiday. Anything beyond that (so called VR) would just be a gesture of goodwill rather than an entitlement.

ad1927 · 4 December 2019 at 10:08PM

Undervalued wrote: »

There is no legal entitlement to redundancy pay with less than two years service. So your only entitlement is to your contractual notice and any accrued but untaken holiday. Anything beyond that (so called VR) would just be a gesture of goodwill rather than an entitlement.

Yes, I appreciate that. I am also expecting that, if they go compulsory redundancy, then I will simply get my 4 weeks notice (as my contract states I am entitled to even after 3 months).

With voluntary redundancies taking place at the end of January, I figure that compulsory redundancies will take a month or two longer giving me a wage into March at best.

So, personally, my choice is to hang on (it is a good company), hope that enough people take VR and I can keep my job.

Another possibility is that I am selected for Compulsory redundancy, if I am I will get an extra month or two of wages.

Considering the time of year, there is no benefit to me to take VR (other than to get 3 weeks wages plus 10%) other than to have a long December off. That only tempts me if I know for certain that redundancy is extremely likely considering my length of service (3 months).

People have until Dec 13 to apply for VR, then there is consultancy until Dec 20th. At that stage, I am guessing they will know if compulsory is necessary or not but I doubt that they will announce that until the New Year.

JReacher1 · 4 December 2019 at 10:43PM

Are you sure you’ll get the redundancy payment? I assume the offer has been passed to everyone but as you’ve been there less than two years you may not be eligible.

They may just get rid of you without paying the redundancy.

TBagpuss · 5 December 2019 at 12:06PM

Have you checked to be sure that they would offer your VR? They don't have to, they can still select from anyone who putrs themselves forward, and they may not chose you. Presumably having only very recently recruited you, they may actually prefer to keep you rather than others, but also they can chose to let you go for any reason within the first 2 years, so they may not inclue you in the redundancies at all, and just let you go with normal notice.

I think in your place I would be looking for other jobs in order to have options if they do decide to let you go or to select you for redundancy, and in the mean time perhaps check with your line manager as to whether the offer of VR would actually apply to you given how recently you joined.

ad1927 · 5 December 2019 at 8:29PM

Since the VR process has started, I would assume that if they wanted to get rid of me they would do so already.

Out of the 200 people I mentioned, roughly 15 have started within the last 2 years so, theoretically, that would be a big saving. However it costs money to recruit and, for example, it took them 15 months to fill my role.

The general consensus on the shop floor is that they are targeting people on the cusp of retirement. However, that is purely guess work, but the VR deal seems to favour long service more than anything else.

I have a chunk of savings and would get through 6-9 months without a job (not that I want to go there). I will keep an eye out for jobs but, with Christmas coming up, there isn't a lot out there.

getmore4less · 6 December 2019 at 8:02AM

Has everyone been given a VR pack with details of their payout or is it here is how we will calculate it work out your own?

Have they said/hinted that if some apply they not be accepted?

One of my old places used to have a enhanced policy that had a minimum of 4 weeks(uncapped) redundancy payment for all.

Some places also do the enhanced package as for VR then if they have to go to a selection process give the same anyway.

if they have done a round before that may be known.

ad1927 · 8 December 2019 at 4:36PM

It is a "Here is how to calculate your package" spreadsheet.

They have also said that some may not be accepted even if they apply. They will know the week after next (is this process quick?)

They said they will seek to cut costs on travel, training etc, in addition to the VR. They are seeking approximately 40 people to leave. After which they MAY then look at compulsory redundancy. Not sure why, but the word "MAY" makes it seem a bit open ended and flexible.

In a previous redundancy, quite a few took up VR (apparently the deal was much sweeter) but the company then went to the press to say they were making 220 redundant. In fact, they made only 130 redundant through CR that time.

getmore4less · 8 December 2019 at 8:21PM

They seem to be shedding a lot of people and need a lot of cutbacks on top.

Are you sure you understand the business viability?

I know a couple of massive IT companies that are in continuous acquisition restructure and shedding staff but underneath are fundementaly viable if you are not in the affected areas. Not all the shedding is public.

ad1927 · 8 December 2019 at 8:48PM

The company employs around 2000. It is our department that is facing the cutbacks. The company is listed on the FTSE 100.

Voluntary redundancy offer after 3 months employment

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