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How Voluntary Redundancy Is Developing Into A Lifestyle
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 a firm you are expected to remain there for the duration of your career, possibly beginning 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 can look at this in two ways, possibly a disaster or an opportunity. Many however, think of this as a disaster and also 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 difficult. What's more is that it could be frustrating when you see your job re-advertised nine months later because the company is starting 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 taken on your eligibility taking in to account such things as your disciplinary record, your qualification, knowledge and ability 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 signifies the offers are less generous.
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 times when some individuals have got upset and chose 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 way of removing the possibility of this happening. You will find that the redundancy payment will be fixed at this time.
One of the questions often raised is whether or not 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 the number of hours you work. Your wages and any bonus that you have accrued in those times are going to be taxable.
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