What is voluntary redundancy? Employment Law
If an employer is looking to make redundancies, they can ask their workforce if anyone wants to be made redundant. Volunteering to be made redundant does not automatically mean the volunteers will be made redundant. Ultimately, the final decision lies with the employer, as the need for redundancies may be costly and some staff will cost too much to simply let go.
Before an individual puts themselves forward for voluntary redundancy, they can ask their employer for details of the redundancy package on offer. It is not uncommon for an employer to offer extra incentives for voluntary redundancy, but they are not obliged to do so.
In the case of voluntary redundancy, an employer must still follow the correct procedures. Employees who put themselves forward for voluntary redundancy are still entitled to the standard redundancy rights.
Employers are often requiring those who wish to take voluntary redundancy, to sign a settlement agreement. This is to protect them if you were to change your mind further down the line. It is a straightforward process we can advise on.
Should I take early retirement instead of voluntary redundancy?
It is not uncommon for employers to suggest a person who is close to retirement age chooses voluntary early retirement rather than voluntary redundancy.
In these circumstances, it is advisable to seek professional advice regarding your decision as it can affect pensions (both occupational and personal), benefits, and redundancy packages.
Things to consider when offered voluntary redundancy
If you are offered voluntary redundancy there are several things to consider before putting yourself forward. For example, taking voluntary redundancy can have an impact on a later benefits claim or mortgage protection policy as you have chosen to leave your employment.
It is advisable to speak to a professional such as a financial advisor, about your options to ensure you make the right decision for your circumstances.
Help & Support From Beswicks Legal
If you have any questions regarding redundancy, our team can help. At Beswicks Legal our specialist team of employment law experts are on hand to support you in taking your next steps. Get in touch today to talk to us.