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How Voluntary Redundancy Has Started To Become A Lifestyle
Voluntary Redundancy or Compulsory Redundancy is unfortunately more a way of life nowadays than it was even as lately as 25 years ago. When you joined a firm you are expected to remain there for the duration of your career, probably starting at the bottom and working your way up when you had learnt the trade.
Nowadays the job market is a changing market whereby companies consolidate their positions by making redundancies just to employ staff again once the economy picks up. You can look at this in two ways, possibly a disaster or an opportunity. Many however, think of this as being a disaster and a slur on their character but this is not the case. It is a task that has been made redundant not you, but, being able to distance yourself could be difficult. What's more is that it could be frustrating when you see your work re-advertised nine months down the line because the firm is starting to grow again often because of its survival through redundancies.
Transparency is required when selections are made for redundancy. Basically the selection process must be fair and without discrimination. Decisions will be made on your eligibility taking in to account such things as your disciplinary record, your qualification, experience and ability to name a few.
If you are provided voluntary redundancy the redundancy package you may be offered is usually an enhanced redundancy payment, and possibly the extended use of a company car or health benefits. These initial redundancy deals are often the most generous a company will make, as consequent rounds of redundancies means the offers are less generous.
You might discover that if your redundancy is compulsory that you will be asked to leave the premises immediately. You may think that this is embarrassing but there have been instances when some people have got upset and decided to cause lots of problems by implementing computer viruses, damaging machinery or stealing and so by asking you to leave this can be considered as a way of removing the possibility of this happening. You will discover that the redundancy payment will be fixed at this point.
One of the questions frequently raised is if redundancy pay is taxable. Your redundancy payment is not taxable up to Thirty thousand pounds. You will be entitled to redundancy payment if you have worked continuously for the company for a minimum of two years irrespective of how many hours you work. Your wages and any bonus that you have accrued during this period are going to be taxable.
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