What Is Voluntary Redundancy Or Compulsory Redundancy
Voluntary Redundancy or Compulsory Redundancy is unfortunately more a lifestyle today than it had been as recently as 25 years ago. When you joined an organisation you are expected to remain there throughout your career, possibly starting 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 once the economy picks up. You may look at this in two ways, either a disaster or an opportunity. Many however, think of this as a disaster and an insult 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 could be difficult. What's more is that it can be frustrating when you see your job re-advertised nine months down the line because the company is beginning to grow again often as a result of its survival through redundancies.
Transparency is required when selections are made for redundancy. Basically the selection procedure needs to 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 just a few.
If you are provided 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 offers are usually 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 right away. It may seem that this is embarrassing but there have been instances when some individuals have got upset and decided to cause a lot of problems by implementing computer viruses, damaging machinery or stealing and so by asking you to leave this can be considered as a means of removing the possibility of this happening. You will discover that the redundancy payment will be fixed at this time.
One of the questions frequently 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 at least two years irrespective of the number of hours you work. Your wages and any bonus which you have accrued during this time period will be taxable.