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How Voluntary Redundancy Has Become A Way Of Life
Voluntary Redundancy or Compulsory Redundancy is unfortunately more a way of life these days than it was even as lately as 25 years ago. When you joined a company you are expected to be there throughout your career, probably 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 employ staff again once the economy picks up. You can look at this in two ways, either a disaster or an opportunity. Several however, think of this as being a disaster and a slur on their character but this is not the case. It is a task that 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 work re-advertised nine months down the line because the firm is starting to grow again often because of its survival through redundancies.
Transparency is needed when selections are made for redundancy. Basically the selection procedure must be fair and without discrimination. Decisions will be made on your eligibility taking in to account such things as your disciplinary record, your qualification, knowledge and ability to name some.
If you are provided voluntary redundancy the redundancy package you may be offered can be an enhanced redundancy payment, and perhaps the extended use of a company car or health benefits. These initial redundancy deals are usually the most generous a company will make, as consequent rounds of redundancies signifies the offers are less generous.
You might discover that if your redundancy is compulsory that you will be asked to leave the premises immediately. It may seem that this is embarrassing but there have been instances when some people have got upset and decided to cause lots of 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 discover that the redundancy payment will be fixed at this point.
One of the questions frequently raised is whether or not redundancy pay is taxable. Your redundancy payment is not taxable 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 irrespective of how many hours you work. Your wages and any bonus that you have accrued in those times are going to be taxable.
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