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Voluntary Redundancy or Compulsory Redundancy is unfortunately more a way of life these days than it had been as lately as 25 years ago. When you joined a company you are expected to be there throughout your career, possibly starting at the bottom and working your way up when you had learnt the trade.
Nowadays the job market is a changing market whereby companies consolidate their positions by making redundancies just to recruit staff again once the economy picks up. You may look at this in two ways, either a disaster or an opportunity. Several however, think of this as a disaster and a slur on their character but this is not the case. It is a task which has been made redundant not you, but, being able to distance yourself could be tough. What's more is that it can be frustrating if you notice your job re-advertised nine months down the line because the firm is starting to develop again often because of its survival through redundancies.
Transparency is needed when selections are made for redundancy. In other words 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 can be an enhanced redundancy payment, and perhaps 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 may discover that if your redundancy is mandatory that you will be asked to leave the premises straight away. It may seem that this is humiliating but there have been instances when some people have got upset and chose to cause many problems by implementing computer viruses, damaging machinery or stealing and thus by asking you to leave this is seen as a means of removing the possibility of this happening. You will find that the redundancy payment will be fixed at this point.
One of the questions frequently raised is whether or not redundancy pay is taxed. Your redundancy payment is not taxed up to Thirty thousand pounds. You will be eligible to redundancy payment if you have worked continuously for the company for at least two years no matter how many hours you work. Your wages and any bonus that you have accrued during this period are going to be taxable.
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