Voluntary Redundancy or Compulsory Redundancy is regrettably more a lifestyle today than it was even as lately as 25 years ago. When you joined a company 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.
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, possibly 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 the job that has been made redundant not you, but, being able to distance yourself could be tough. What's more is that it could be frustrating when you see your job re-advertised nine months down the line as the company is beginning to grow again often because of its survival through redundancies.
Transparency is needed when selections are made for redundancy. To put it differently the selection process has to be fair and without discrimination. Decisions will be made on your eligibility considering such things as your disciplinary record, your qualification, knowledge and capability to name some.
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 often probably the most generous a company will make, as consequent rounds of redundancies signifies the offers are less liberal.
You might discover that if your redundancy is mandatory that you will be asked to leave the premises right away. You may think that this is humiliating but there have been instances when a few individuals have got angry and decided to cause lots of problems by implementing computer viruses, damaging machinery or stealing and thus 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 many questions often raised is whether redundancy pay is taxable. Your redundancy payment is not taxed 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 which you have accrued in those times will be taxable.
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