Should i take voluntary redundancy at work

Use this information to calculate the maximum settlement amount you each employee is entitled to, and if you are able to outlay more as a financial incentive. In practical terms, voluntary redundancy usually involves offering a more generous settlement than the employee would otherwise be entitled to under compulsory redundancy.

This is to encourage employees to take up the offer and to allow the business to avoid the compulsory redundancy process. The initial settlement offer would usually be below the maximum amount, to allow for negotiation. Remember, the employee has the right to decline any offer for voluntary redundancy and withdraw from the voluntary redundancy process. Employers are not obligated to accept offers from employees to take up voluntary redundancy. It is for the employer to agree to the resignation.

This should be made clear to employees when offering voluntary redundancy. Any selection from the pool of volunteers will have to follow a fair process, to avoid legal complaints. This should involve assessing applications based on criteria such as their role, skills, attendance and disciplinary record. This also helps to avoid situations where key employees volunteer who the employer would wish to retain. Again, record keeping will be critical here as evidence of decision making and reasoning.

If the organisation refuses applications for voluntary redundancy but then goes on to make compulsory redundancies, they should be prepared to defend their decision.

Employees who are compulsorily made redundant may be able to claim that their dismissal was unfair since their role could have been saved had the voluntary redundancies been accepted. If any of your employees are close to retirement, you may suggest they take voluntary early retirement instead of voluntary redundancy.

If this is proposed, there should be a fair selection process. You should set out the proposed retirement package, including redundancy payments and notice periods. Working closely with our specialists in HR , we deliver comprehensive advice on the options open to you as an employer and provide practical support through the redundancy process, with particular experience in complex circumstances such as managing redundancy during maternity leave.

For help and advice with a specific issue, speak to our experts. The amount offered for voluntary redundancy will depend on a number of factors, including length of service, and will usually be negotiated. Employers and employees should ensure they are clear on the level of redundancy pay and any other entitlements that should form part of the exit package. Yes, the employer is not obligated to accept the offer to take voluntary redundancy. Likewise, the employee may decline to accept the settlement offered for voluntary redundancy.

Employees should be given the relevant amount of statutory minimum notice period, or the amount they are entitled to under their contract of employment if longer. The staff with most to gain financially are often the ones that choose to go. So, when it comes to calculating redundancy pay , you may find payments are higher than if you went with a compulsory redundancy strategy. When employees put themselves forward and are then either chosen or not for redundancy, there is a risk that you might be open to claims of discrimination.

You must not give any regard to age, gender, race, disability, marital status, sexual orientation, religion or any other factor that may leave you open to allegations of unfair dismissal. Equally, discrimination can be alleged by those who are forced into redundancy where offers of voluntary redundancy from other employees are refused.

If you offer voluntary redundancy, you may end up with more volunteers than you had anticipated. Those that are not chosen for redundancy may feel very negatively about your decision and may become demotivated. Equally, you may be left with an uncertain working relationship with any staff who have put themselves forward and not been chosen.

You may be left feeling circumspect about their motives for wanting to leave and may in turn feel they are somehow disloyal to you. Of course, undertaking any redundancy programme will come with its own challenges. But if you do find yourself having to make redundancies, then careful consideration of these pros and cons of voluntary redundancy can help you to decide what is the right option for your company. By Melissa Jones.

Business Process. GB NZ. HR Software. Staff Holiday Planner. Absence Management. Sickness Monitoring. HR Dashboard. HR Reporting. People Management. Performance Management. HR Task Management. Location Management. Payroll Management. Document Management. HR Database. Bulk Updates. Optional Modules. Rota, Time and Attendance New. Expenses Management. Well, if you're willing to offer up to 12 months' voluntary redundancy pay, perhaps begin by offering six months'.

Some staff will try to negotiate a better package, and since voluntary redundancy is voluntary, if you refuse to up your offer, they have the right to turn it down. In this case, if they turn it down, you can offer more of the amount you're already happy to offer. Redundancy is a delicate matter. For some employees, when you choose them for redundancy, you'll hurt their pride and their feelings.

The reasons why you need to cut your budget and your personnel won't be important to them. You might have to deal with one or two troublesome employees who refuse your voluntary redundancy offers simply to spite you. You should keep written records of your voluntary redundancy process for each employee. Written proof you have a fair procedure will work in your favour if your employee tries to make a claim against you.

Write your employee a voluntary redundancy letter explaining what happens when they take voluntary redundancy.

Make clear you're offering a voluntary redundancy and clarify the amount you're offering. In the letter, also include:. You could also take this moment to apologise for the unfortunate nature of the situation. Voluntary redundancy rejections will mean you'll have to make compulsory redundancies. Make sure that you use fair criteria when choosing whom you let go. Fair criteria include:. When reviewing an employee's absence and lateness, you should make sure that you check whether any instances of absence or lateness were due to a disability or any other protected characteristic.

Top links Our pensions advice Write a letter to your creditors. Top links If you want a refund because of coronavirus Contact the consumer helpline Report to Trading Standards Problems with a used car Return faulty goods Buying a used car Your energy supply View all. Housing Coronavirus - if you have problems with renting Renting privately Renting from the council or a housing association Homelessness Repairs in rented housing Renting a home Mortgage problems Discrimination in housing View all in Housing.

Family Living together, marriage and civil partnership How to separate Sorting out money Making agreements about your children If you were living together Death and wills Gender violence Children and young people View all in Family.

Top links Making a will Complaining about social care services What does it mean to have power of attorney? Child abuse - advice and support Advice for people affected by child abuse. Law and courts Legal system Claiming compensation for a personal injury Discrimination Parking tickets Civil rights.

Top links Making a small claim Help for victims of rape and sexual violence. Health Coronavirus - rules you need to follow NHS healthcare Help with health costs Discrimination in health and care services Going abroad for dental care NHS and social care complaints.

NHS and adult social care complaints Find out how to complain about your doctor or health visitor. Top links Find your local Citizens Advice Volunteer with us Jobs in our network Press releases Our blogs Read what we're saying about a range of issues.