What Is Voluntary Redundancy Or Compulsory Redundancy
Voluntary Redundancy or Compulsory Redundancy is unfortunately more a lifestyle these days than it had been as recently as 25 years ago. When you joined an organisation 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 career market is a changing market whereby companies consolidate their positions by making redundancies just to recruit staff again when the economy picks up. You may 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 situation. It is a task which has been made redundant not you, but, being able to distance yourself can be challenging. What's more is that it could be frustrating when you see your work re-advertised nine months down the line because the company is starting to develop again often as a result of its survival through redundancies.
Transparency is essential when selections are made for redundancy. To put it differently 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, expertise and ability to name just a few.
If you are offered voluntary redundancy the redundancy package you might 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 usually one of the most generous a company will make, as consequent rounds of redundancies implies the offers are less generous.
You may find that if your redundancy is mandatory that you will be asked to leave the premises right away. You may think that this is embarrassing but there have been instances when some individuals have got upset and chose to cause a lot of problems by implementing computer viruses, damaging machinery or stealing therefore 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 several questions often raised is whether or not redundancy pay is taxed. Your redundancy payment will not be taxed 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 time period are going to be taxable.
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