How Voluntary Redundancy Is Starting To Become A Way Of Life
Voluntary Redundancy or Compulsory Redundancy is unfortunately more a lifestyle today than it was even as lately as 25 years ago. When you joined an organisation you are expected to be there for the duration of your career, possibly beginning at the bottom and working your way up when you had learnt the trade.
These days the career market is a changing market whereby companies consolidate their positions by making redundancies only to employ staff again when the economy picks up. You can look at this in two ways, either a disaster or an opportunity. Many however, think of this as being a disaster and an insult on their character but this is not the case. It is the job that has been made redundant not you, but, being able to distance yourself can be tough. What's more is that it can be frustrating when you see your work re-advertised nine months down the line as the company is starting to develop again often because of its survival through redundancies.
Transparency is needed when selections are made for redundancy. Basically the selection procedure needs to be fair and without discrimination. Decisions will be taken on your eligibility taking in to account such things as your disciplinary record, your qualification, experience and capability to name some.
If you are provided voluntary redundancy the redundancy package you may be offered can be an enhanced redundancy payment, and perhaps the extended use of a company car or health benefits. These initial redundancy deals are usually one of the most generous a company will make, as consequent rounds of redundancies implies the offers are less liberal.
You may discover that if your redundancy is compulsory that you will be asked to leave the premises right away. It may seem that this is embarrassing but there have been times when some individuals have got upset and chose to cause a lot of problems by implementing computer viruses, damaging machinery or stealing and thus by asking you to leave this is seen as a means of removing the possibility of this happening. You will discover that the redundancy payment will be fixed at this point.
One of the questions often raised is if redundancy pay is taxed. Your redundancy payment is not taxable up to Thirty thousand pounds. You will be eligible to redundancy payment if you have worked continuously for the company for a minimum of two years regardless of the number of hours you work. Your wages and any bonus which you have accrued during this period are going to be taxable.