subject: Voluntary Redundancy - How It Affects Today's Employee [print this page] As little as 25 years ago, when you joined a company you often thought you had a job for life possibly working your way up as you learnt your trade. Unfortunately Voluntary Redundancy or Compulsory Redundancy has changed all of that.
The job market fluctuates and changes all the time and companies tend to consolidate their positions by making redundancies only to employ again when the economy starts to grow. Many see redundancy as a disaster rather than an opportunity, and see their situation as being a slur on their character. This however, is not the case as it is the job that is redundant and not as a result of your behaviour. Many find it difficult to distance themselves from this belief. Even more frustrating is when, having been made redundant, you see your old firm advertising and re-employing staff as it has managed to survive and grow again.
When you are selected for redundancy the means by which this occurs will need to be transparent. This means that the selection process has to be seen as fair and without discrimination. Eligibility for early retirement will be considered as well as taking into account your attributes such as qualification, experience, capability, adaptability and your disciplinary record.
You may be offered an enhanced redundancy payment or Redundancy Package if you are selected for Voluntary Redundancy. This can come in the form of the use of the company car and health benefits. You will probably find that the initial redundancy offers are more generous than the consequent rounds that may go on.
You might be surprised to learn that you may be asked to leave your work premises straight after you have been informed that you are being made redundant. This can be very humiliating but the reason for this is that some employees have been known to get angry and cause the company a lot of problems in the form of computer viruses, stealing, damaging machinery and so by asking to leave immediately this removes the potential of this happening. Your redundancy payment will not be negotiable at this point.
One of the main questions asked is "will my redundancy pay be taxable?" Your redundancy payment will not be taxable up to Thirty thousand pounds and you will be eligible to receive redundancy payment if you have worked continuously and without a break for the company for a minimum of two whole years regardless of how many hours you have worked. However, your wages and any bonuses the you have accrued during this period will be taxable.
