How Voluntary Redundancy Is Starting To Become A Lifestyle

Voluntary Redundancy or Compulsory Redundancy is unfortunately more a lifestyle today than it had been as recently as 25 years ago. When you joined a firm you are expected to remain there for the duration of your career, possibly 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 only to recruit staff again when the economy picks up. You can look at this in two ways, possibly a disaster or an opportunity. Many however, think of this as a disaster and a slur on their character but this is not the situation. It is the job which has been made redundant not you, but, being able to distance yourself can be difficult. What's more is that it could be frustrating when you see your job re-advertised nine months down the line because the company is beginning to develop again often as a result of its survival through redundancies.

Transparency is required when selections are made for redundancy. Basically the selection process has 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, expertise and capability to name some.

If you are offered 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 offers are often the most generous a company will make, as consequent rounds of redundancies implies the offers are less liberal.

You may find that if your redundancy is compulsory that you will be asked to leave the premises immediately. You may think that this is humiliating but there have been instances when some individuals have got angry and chose 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 find that the redundancy payment will be fixed at this point.

One of the questions often raised is whether redundancy pay is taxed. Your redundancy payment will not be 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 regardless of how many hours you work. Your wages and any bonus that you have accrued during this time period will be taxable.

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