What Is Voluntary Redundancy & Should I Take It?
Voluntary redundancy is when you and your employer agree to terminate your contract in return for a financial investment.
Jobs aren’t as secure as they once were; and with things changing in the labour market quicker than ever before, the chances of you facing redundancy at some point appear to be increasing each year.
Typically, if a company is about to put a lot of employees at risk of redundancy they may offer voluntary redundancy to everyone first. In some instances, an organization is able to make the deductions they need to so compulsive redundancies may not be needed.
One thing to remember, if you have chosen to take voluntary redundancy, your legal rights remain the same as those who go through compulsive redundancy.
When considering if voluntary redundancy is right for you, there are some things you should consider other than the initial financial gain.
- 1. Make sure you budget. After you initial payout as been received and spent, how will you continue to pay your bills and continue paying for your lifestyle?
- 2. Are you going to need the redundancy payment to live for the next few months until you find another job? If that is your intention, it may be a useful idea to wait until you’ve secured your next job until you make any impulse purchases such as your dream holiday. You don’t want to be left short.
- 3. Have I spoken to my loved ones? Remember if you are in a relationship or have children, redundancy affects you all. Make sure you’re all in agreement as to the best course of action for you and your family.
- 4. When would I need to get a new job by and when should I start looking? Have I even decided what I’d like to do next?
- 5. And finally. Why am I so keen to take voluntary redundancy? Make sure your reasons are solid. Think further than the initial payment.