choosing voluntary redundancy or not?

Discussion in 'General Chat' started by richard plumb, Mar 19, 2012.

  1. richard plumb

    richard plumb
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    I have an opportunity to take voluntary redundancy at work with a decent pacakge, but I'm uncertain what to do. My role has become very quiet recently with certain changes that happened last year and I'm generally not happy with where things are.

    On the flip side though, I'm the only breadwinner and I have a family to keep.

    I know when I've been made redundant in the past, I've gone on to find better things, and its been a good thing - I'm just hesitant about being the one to push the button, I don't want to be looking back on it with hindsight saying 'I shouldn't have done that'

    any thoughts on responsibility Vs happiness? Do I just knuckle down and get on with it?
     
  2. MikeP1

    MikeP1
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    Do you have any insurances for redundancy protection. If you do then you would need to work it where you let your manager know you'd be ok with leaving, but not volunteer. The insurance will not cover voluntary redundancy.

    I've faced this a few times & to date have stayed put. My experience has been not all companies do let people go just because the work drops off. Sometimes there is still a requirement they have to fill.

    Anyway, to the bigger question. If you don't feel happy & feel there is little chance of improvement then I would say take the chance. That's assuming the type of work you do has a reasonable amount of hiring going on in the market.
     
  3. nheather

    nheather
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    Similar situation.

    I could take VR, the scheme is pretty good. More fortunate in that we could live fairly comfortably on my wife's salary, but would prefer to clear the kids through university first.

    Have found out that I am safe from Compulsary Redundancy (CR), so that limits my decision - by which I mean that it is always worth thinking VR if CR is a possibility because it puts you in control.

    My biggest fear in the job market. Three years ago I would have been confident about finding new work and would have strongly considered VR, but today, pretty much all the companies I would consider are going through the same pain so I'm not confident they would take me on.

    Another factor is my age and pension. I'm currently on a final salary pension with a lot of years under my belt. It would have to be a good job to make me give that up. Were I a few years older I would have gone with VR and taken early retirement but that option isn't available to me for another 6 years (assuming the government does move the goalposts again).

    So I would consider

    (i) Is CR still a possibility, if so how likely. If it likely, then VR may be best because it gives you more control.

    (ii) How confident that you could find another job.

    (iii) How much do you have tied up in your current job (pension, years of service etc).

    (iv) Remember that just because you can request VR, doesn't mean that it will be given. Most employers are careful not to lose their best staff through VR.

    (v) How much do you dislike your current job. VR can be the catalyst to change, but be careful you are not in a 'grass is greener' situation.

    Cheers,

    Nigel
     
  4. johntheexpat

    johntheexpat
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    Jump with a decent parachute rather than wait to be pushed with the minimum.
     
  5. nheather

    nheather
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    It depends on the scheme. The one I'm in at the moment, the VR and CR terms are identical.

    Generaly, the benefit of taking VR is that as it is done early in the scheme you often have a great deal of flexibility to choose your date - so your may choose 31st August, giving you 5 months to find a replacement job. But if you wait for CR then you are more likely to be told that you are finishing in a month's time.

    But it is a good idea to find out how likely CR is first. Have they said how many in total. Have they then split that by office. Have they then split that by role type. If so you then get a good idea of the risk of CR.

    And remember, as I said before, just because you apply for VR doesn't mean your employer will agree to let you take it.

    Cheers,

    Nigel
     
  6. richard plumb

    richard plumb
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    I don't, but they word it as redundancy to help those that do. Its actually a relocation so you can choose to leave if it impacts you too greatly.

    scheme and support is great. I don't need to leave for 6 months, during which I get lots of support to help set up a new business, find other employment within the company or elsewhere. Then I get a further two months after 'leaving' where I get access to those services and still get paid. Terms are same as compulsory

    I'm 41 and have been working here for 11 years, currently on final salary scheme here.
     
    Last edited: Mar 19, 2012
  7. Mr Incredible

    Mr Incredible
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    TBH, a lot depends if you think there could be more lay-offs in the future, perhaps total closure, when you may be offered only statutory redundancy, which is a pittance TBH.

    IMHO, take the money and run and look for something where the prospects are better.
     
  8. addyb

    addyb
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    Back in 2006 I took VR with the company I was with. It was a very generous package and there was mention of compulsory if there wasn't enough people after the VR scheme ended. I felt I'd got as far as I could in my position there and whilst I was on good money I was bored in my role and felt like a change so for me it was a no brainer. It paid for our wedding. A great holiday in Florida, etc and I had a nice break for a month or so then got another job on similar money.
     
  9. Mr_Wistles

    Mr_Wistles
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    Try and find another job first. Then take VR.
     
  10. nheather

    nheather
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    Definitely the best way to do it, but again depends on the scheme. Mine has a VR window which gives you a limited time to apply. And even then you don't know whether you are going to be accepted and when you will be allowed to leave. So in my scheme it is more a leap of faith - apply for VR, agree a date in the future and then start job hunting to hopefully find something to coincide with leaving.

    Well that is a big extra consideration. Whould you be happy relocating. If not then, the VR decision becomes a whole lot simpler.

    Another tip - if you are using VR to retire early (I know this isn't the case with the OP) then arrange to finish just after April 5th if possible. This means that your redundancy is in a complete new tax year so you will get to keep more of it. For example, say the redundancy is £70k, £30k of which is tax free and £40k is taxable. If you take VR retirement in March then you will pay 40% on the £40k - £16k in income tax. But if you delayed by a few weeks then you would pay 20% on about £32k - about £6.4k (almost £10k more in your pocket). I guess the same advice holds if you think you may struggle to find a new job.

    Cheers,

    Nigel
     
    Last edited: Mar 19, 2012
  11. Scooby2000

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    If you have time to get an alternative job Id go for it, got made redundent with no notice and still not got a full time job, its not a good time to be out of work so make sure you can secure something in the time you get.
     
  12. Miss Mandy

    Miss Mandy
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    I got made redundant in January and I still haven't found a new job. Its horrible out there at the moment and its really starting to get me down.
    The first thing you need to check before considering VR is whether you have a realistic chance of finding a new job if you leave otherwise you could find yourself a lot worse off.
     
  13. payforward

    payforward
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    Hi I have an over of VR and only a fews days to make up my mind. I have been with the same company for 20+ years, and the package is very attractive. I am in my 50s, if I stay I will have to apply for my job which entails extra responsibility and nothing extra. the Job is already stressful enough. I am fearful of staying and fearful of going. Any advice would be appreciated.
     
  14. Mr Incredible

    Mr Incredible
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    There's no guarantee that the "new" job will be there in a years time and equally no guarantee the same attractive terms will be offered. Thank them and take their offer.
     
  15. brumhee

    brumhee
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    I'd second this especially if the terms are good enough that you can take early retirement without impacting your lifestyle to greatly. :smashin:
     
  16. Trollslayer

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    One thing to consider - in some industries lots of people get laid off at once if a project ends suddenly (politics etc.) and at that point there are a lot of the same people looking for jobs.
     
  17. payforward

    payforward
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    Thank you both, Its not early retirement as I will still have access to a reduce pension at 65, I want to work and would be happy to take a role with less responsibility and less pay but its the thought of going for interviews starting afresh is so scary. Has anyone had similar experiences and how did they get on afterwards.
     

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