Company offering VR, jump before merger?
Discussion
Have never loved the job, been there nearly 6 years and have reached the pay ceiling in my current role last year. Best way to describe is that it's unrewarding but has decent benefits, pension and training if you want it.
We're merging with a larger organisation and staff have been offered to apply for voluntary redundancy before the move completes.
There may be more opportunities/new exciting roles at the new org but it's unclear exactly how it all fits together or the staff required in each department. If I stick it out I'll either be doing the same job or have to reapply and not make the cut (compulsory redundancy) or be put into a random department that needs my grade (rather than my skills).
The options are:
- Take VR now (circa £40k) but cannot return to the industry for 6 months
- Wait and see with potential for same pay-out on more favourable terms (return after 1 month) at new org
Been in the sector for more than a decade and it's more or less office work with varying degrees of tedium badged at Project Management/Delivery. I have all the badges (Change Management, PRINCE2, Management of Risk, Programmes, Portfolios, Agile PM etc), but never use them in the day job and not sure I actually want roles that have more of it.
Have toyed with the idea of retraining and prefer more physical, tangible work so pay-out would provide a buffer of sorts but don't have heart set on any particular field. I'm 36, with a partner, a young child and a mortgage.
The timescales for applying for VR are extremely short so what better way than to ask a bunch of strangers on a motoring forum for career advice! What would you do?
We're merging with a larger organisation and staff have been offered to apply for voluntary redundancy before the move completes.
There may be more opportunities/new exciting roles at the new org but it's unclear exactly how it all fits together or the staff required in each department. If I stick it out I'll either be doing the same job or have to reapply and not make the cut (compulsory redundancy) or be put into a random department that needs my grade (rather than my skills).
The options are:
- Take VR now (circa £40k) but cannot return to the industry for 6 months
- Wait and see with potential for same pay-out on more favourable terms (return after 1 month) at new org
Been in the sector for more than a decade and it's more or less office work with varying degrees of tedium badged at Project Management/Delivery. I have all the badges (Change Management, PRINCE2, Management of Risk, Programmes, Portfolios, Agile PM etc), but never use them in the day job and not sure I actually want roles that have more of it.
Have toyed with the idea of retraining and prefer more physical, tangible work so pay-out would provide a buffer of sorts but don't have heart set on any particular field. I'm 36, with a partner, a young child and a mortgage.
The timescales for applying for VR are extremely short so what better way than to ask a bunch of strangers on a motoring forum for career advice! What would you do?
Can only speak from experience of a couple of friends who were offered VR and didn’t take it, hoping for a bigger payout - that never came and they wished they’d taken the original offer. Two in tech, one in travel.
Was reading about the Google layoffs today.
“ it will pay employee the full notice period (min 60 days), a severance package starting at 16 weeks, will pay 2022 bonuses and holiday leave, and will offer half a year of healthcare benefits.”
Doesn’t sound too bad if you think you can pick up a new role in 2/3 months.
Was reading about the Google layoffs today.
“ it will pay employee the full notice period (min 60 days), a severance package starting at 16 weeks, will pay 2022 bonuses and holiday leave, and will offer half a year of healthcare benefits.”
Doesn’t sound too bad if you think you can pick up a new role in 2/3 months.
I was offered voluntary redundancy of sorts back in December 2020. I hadn't been there for 2 years, in fact barely a year, but they were losing money hand over fist (worst company I have ever worked for) it wasn't masses of money, but I already had a decent emergency fund and it was 6 months net income.
I had to employ the services of an employment lawyer, at the companies cost and when I told her I hated the place and would have been looking for a new job in the new year, she advised I grab the offer firmly.
I did exactly that. I came out into Jan 2021 a little panicked what with Covid still being a big issue. I needn't have worried as I had 3 offers within 6 weeks and my package improved by almost 70%
I do have a professional qualification, which made it easier I think, but nonetheless I ended up with about £10,000 I didn't spend and had 3 months off, half of it without the worry of job hunting.
I'm still at the "new" job incidentally, 22 months on. I am married and have 2 young children and a mortgage, so not a dissimilar situation to your own.
Best of luck, whatever you decide.
I had to employ the services of an employment lawyer, at the companies cost and when I told her I hated the place and would have been looking for a new job in the new year, she advised I grab the offer firmly.
I did exactly that. I came out into Jan 2021 a little panicked what with Covid still being a big issue. I needn't have worried as I had 3 offers within 6 weeks and my package improved by almost 70%
I do have a professional qualification, which made it easier I think, but nonetheless I ended up with about £10,000 I didn't spend and had 3 months off, half of it without the worry of job hunting.
I'm still at the "new" job incidentally, 22 months on. I am married and have 2 young children and a mortgage, so not a dissimilar situation to your own.
Best of luck, whatever you decide.
Public sector, just over £40k gross. VR pay terms are same as compulsory; 1 month pay for every full year worked.
Just shy 14 years so would get 13 months pay (£30k tax free, £13k-ish taxed). Never worked anywhere else professionally other than temp jobs before & during uni. Would be giving up favourable pension scheme, benefits and holiday pay.
Mates in private sector say it's quickly catching up and way ahead on pay etc just nothing touches the pensions. Is holiday and pension enough to keep me there though?
Just shy 14 years so would get 13 months pay (£30k tax free, £13k-ish taxed). Never worked anywhere else professionally other than temp jobs before & during uni. Would be giving up favourable pension scheme, benefits and holiday pay.
Mates in private sector say it's quickly catching up and way ahead on pay etc just nothing touches the pensions. Is holiday and pension enough to keep me there though?
Public sector....merging with larger organisation?
I've been private sector for 20 yrs after 15 public. Was hard giving up that Civil Service pension!!!!! But the opportunities with the private pension schemes actually look like at the moment to be on track to give me, albeit with 3 more years worked to 62 rather than 59 when I'd have maxed my CS pension, pensions about 60% higher, plus drawdown options etc etc.
However, just make sure you check what your industries market is like. Before Christmas we were on for 6-8% payrises. We got 2% as Clients (some public, some private) have frozen or asked for hrly rate reductions. Our biggest private Client runs on Jan-Dec FY. They have just announced a complete recruitment freeze for 2023, including us no longer body-shopping to them and even cancelled recruits in progress who were going through clearance having resigned from their other employers. Other big contractor we work for has paused all new work until April 2023 to await government funding. We've paused all staff recruitment also now and are only taking on contractors for the next three months. Are you getting TUPE'd the you hols should for a while stay the same? Or be bought off you like mine were when TUPE'd two years ago and I use that annual uplift to buy extra days leave so I am back to where I am.
I've been private sector for 20 yrs after 15 public. Was hard giving up that Civil Service pension!!!!! But the opportunities with the private pension schemes actually look like at the moment to be on track to give me, albeit with 3 more years worked to 62 rather than 59 when I'd have maxed my CS pension, pensions about 60% higher, plus drawdown options etc etc.
However, just make sure you check what your industries market is like. Before Christmas we were on for 6-8% payrises. We got 2% as Clients (some public, some private) have frozen or asked for hrly rate reductions. Our biggest private Client runs on Jan-Dec FY. They have just announced a complete recruitment freeze for 2023, including us no longer body-shopping to them and even cancelled recruits in progress who were going through clearance having resigned from their other employers. Other big contractor we work for has paused all new work until April 2023 to await government funding. We've paused all staff recruitment also now and are only taking on contractors for the next three months. Are you getting TUPE'd the you hols should for a while stay the same? Or be bought off you like mine were when TUPE'd two years ago and I use that annual uplift to buy extra days leave so I am back to where I am.
Domski86 said:
Public sector, just over £40k gross. VR pay terms are same as compulsory; 1 month pay for every full year worked.
Just shy 14 years so would get 13 months pay (£30k tax free, £13k-ish taxed). Never worked anywhere else professionally other than temp jobs before & during uni. Would be giving up favourable pension scheme, benefits and holiday pay.
Mates in private sector say it's quickly catching up and way ahead on pay etc just nothing touches the pensions. Is holiday and pension enough to keep me there though?
Are you sure you are getting this correct? Statutory redundancy pay is one week's pay for each full year (if you are aged between 22 and 41) or 1.5 weeks pay for each full year if you are aged over 41. Just shy 14 years so would get 13 months pay (£30k tax free, £13k-ish taxed). Never worked anywhere else professionally other than temp jobs before & during uni. Would be giving up favourable pension scheme, benefits and holiday pay.
Mates in private sector say it's quickly catching up and way ahead on pay etc just nothing touches the pensions. Is holiday and pension enough to keep me there though?
If you are on 40k gross, the if you have been there for 6 years this would equate to between £4615 and £6293, although a lot of employers will offer you a much better package. It might still be worth taking, but this is quite a jump from the redundancy figure you quoted.
Note that if you are going by the statutory figures pay is capped at £571 per week, so the redundancy payout could be as little as £3426
Edited to add: in one post you say you have been there 6 years, in another 13 years? Which is it ahaha
Edited by LeftLake on Friday 20th January 21:54
Edited by LeftLake on Friday 20th January 22:00
king hands off Some clarity to questions. Merger under tupe-like conditions. 6 years in current role but almost 14 in sector. Redundancy calculated based on length of total service. No PILON, they want us out before the end of tax year, using up all leave in advance.
This isn't statutory redundancy, it's a voluntary scheme under similar conditions to sector compulsory scheme. There may be another round offered later post merger, but also threats of job re-application, redeployment before being eligible for compulsory (rather than statutory) redundancy.
Benefits of taking now are clean break and money, drawbacks no return for minimum of 6 months and leaving/pausing decent pension and no immediate employment lined up.
This isn't statutory redundancy, it's a voluntary scheme under similar conditions to sector compulsory scheme. There may be another round offered later post merger, but also threats of job re-application, redeployment before being eligible for compulsory (rather than statutory) redundancy.
Benefits of taking now are clean break and money, drawbacks no return for minimum of 6 months and leaving/pausing decent pension and no immediate employment lined up.
Edited by Domski86 on Monday 23 January 11:10
deja.vu said:
zarlak said:
Don't forget that only the first £30k of the redundancy pay will be tax free.
Not strictly true, PILON is taxed as standard income. Offer of VR is pretty poor. Where's the incentive to agree to leave the industry for 6 months?.
In addition to the redundancy pay you should get your notice pay regardless of whether it's PILON or making you work it. I assume this would be wrapped up in a settlement agreement where you waive your rights to sue.
If that offer is the same as the compulsory redundancy then the organisation gets the benefit of you leaving with no strings attached but you're not getting any enhancement? Read up on TUPE as you have significant protection post-transfer.
On the other hand, taking a practical approach, it sounds like you're a little jaded.
36 is approaching mid-career territory so could be a good time to take the cash and sit back / take stock / re-focus or just take some time out with your family?
In addition to the redundancy pay you should get your notice pay regardless of whether it's PILON or making you work it. I assume this would be wrapped up in a settlement agreement where you waive your rights to sue.
If that offer is the same as the compulsory redundancy then the organisation gets the benefit of you leaving with no strings attached but you're not getting any enhancement? Read up on TUPE as you have significant protection post-transfer.
On the other hand, taking a practical approach, it sounds like you're a little jaded.
36 is approaching mid-career territory so could be a good time to take the cash and sit back / take stock / re-focus or just take some time out with your family?
MBVitoria said:
Offer of VR is pretty poor. Where's the incentive to agree to leave the industry for 6 months?.
In addition to the redundancy pay you should get your notice pay regardless of whether it's PILON or making you work it. I assume this would be wrapped up in a settlement agreement where you waive your rights to sue.
If that offer is the same as the compulsory redundancy then the organisation gets the benefit of you leaving with no strings attached but you're not getting any enhancement? Read up on TUPE as you have significant protection post-transfer.
On the other hand, taking a practical approach, it sounds like you're a little jaded.
36 is approaching mid-career territory so could be a good time to take the cash and sit back / take stock / re-focus or just take some time out with your family?
You're right there is little incentive to apply for VR other than the money. Not jaded, but have been coasting the last few years; learned few new skills and haven't sought any training outside immediate role. Flipside has been time to focus on personal stuff so meeting partner, buying house, having child etc. In addition to the redundancy pay you should get your notice pay regardless of whether it's PILON or making you work it. I assume this would be wrapped up in a settlement agreement where you waive your rights to sue.
If that offer is the same as the compulsory redundancy then the organisation gets the benefit of you leaving with no strings attached but you're not getting any enhancement? Read up on TUPE as you have significant protection post-transfer.
On the other hand, taking a practical approach, it sounds like you're a little jaded.
36 is approaching mid-career territory so could be a good time to take the cash and sit back / take stock / re-focus or just take some time out with your family?
Open to retraining with a view to a career change but as the bigger earner, a big drop in salary is daunting. We live frugally and could cope with a drop, but interest rate rises and childcare costs make big losses hard. Redundancy would provide a buffer but not for, say a 2 year course and entry level position after retraining.
Gassing Station | Jobs & Employment Matters | Top of Page | What's New | My Stuff