Voluntary redundancy: Sanity check / what to be aware of
Discussion
Morning,
Must be the time of year for it but I have been offer voluntary redundancy from my role. Details seems a tad sparse thus far however one months wage for every year of service has been offered. I've been with my employer for five years. The closing date is January but the actual leaving date remains to be agreed / details to follow.
The back story, briefly, is that we have been considering moving house in the new year for family reasons. My employer would potentially support a relocation however there is no guarantees. The job has become less enjoyable of late plus a couple of fairly trivial health issues have made the role more of a challenge and I have found myself questioning if its something I want to do or indeed could do for the foreseeable future.
Based on that, I'm now swaying towards taking the offer however I'll openly admit, I'm a bit uneducated in such matters and hence have my concerns / I'm not sure on what I need to be aware of / what the pitfalls are. I'm working on the basis that a) the job may beat me in due course and b) if we move, the role may not be available to me thus I'll have to resign... hence, given the timescales, taking the offer does make some sense.
We're in the fortunate position that we have no mortgage, no car payments, no credit cards etc... thus I'm not too concerned about the short term effects and in some ways, if it worked out to plan then I'd be looking to have some time off to move house etc then beyond that, I'm keen to look elsewhere, possibly reducing my hours / wife is looking to increase hers. However, it's all a bit of a leap of faith.
In short, hoping for some pointers as to what to be aware of with the process, what to ensure I have in place, what to ask etc - we've been offered some guidance in due course however I'm currently looking to enlist a financial advisor for a bit of a health check but also looking for input from those who have been down a similar path / are aware of any pitfalls that I may not be.
Thanks
Must be the time of year for it but I have been offer voluntary redundancy from my role. Details seems a tad sparse thus far however one months wage for every year of service has been offered. I've been with my employer for five years. The closing date is January but the actual leaving date remains to be agreed / details to follow.
The back story, briefly, is that we have been considering moving house in the new year for family reasons. My employer would potentially support a relocation however there is no guarantees. The job has become less enjoyable of late plus a couple of fairly trivial health issues have made the role more of a challenge and I have found myself questioning if its something I want to do or indeed could do for the foreseeable future.
Based on that, I'm now swaying towards taking the offer however I'll openly admit, I'm a bit uneducated in such matters and hence have my concerns / I'm not sure on what I need to be aware of / what the pitfalls are. I'm working on the basis that a) the job may beat me in due course and b) if we move, the role may not be available to me thus I'll have to resign... hence, given the timescales, taking the offer does make some sense.
We're in the fortunate position that we have no mortgage, no car payments, no credit cards etc... thus I'm not too concerned about the short term effects and in some ways, if it worked out to plan then I'd be looking to have some time off to move house etc then beyond that, I'm keen to look elsewhere, possibly reducing my hours / wife is looking to increase hers. However, it's all a bit of a leap of faith.
In short, hoping for some pointers as to what to be aware of with the process, what to ensure I have in place, what to ask etc - we've been offered some guidance in due course however I'm currently looking to enlist a financial advisor for a bit of a health check but also looking for input from those who have been down a similar path / are aware of any pitfalls that I may not be.
Thanks
I took VR a short while back.
A months pay per year of service is a good deal on the face of it. A lot better than statutory.
Ultimately though you have to balance up where your are in your career/life. 20 weeks money with £30k tax free sounds nice…. But will that buy you enough time to find something else? Especially in the current jobs market.
I ended with a around the equivalent of around 10 months salary, but that was fine as I was looking to retire anyway in the near future.
A months pay per year of service is a good deal on the face of it. A lot better than statutory.
Ultimately though you have to balance up where your are in your career/life. 20 weeks money with £30k tax free sounds nice…. But will that buy you enough time to find something else? Especially in the current jobs market.
I ended with a around the equivalent of around 10 months salary, but that was fine as I was looking to retire anyway in the near future.
Davie said:
I'm currently looking to enlist a financial advisor for a bit of a health check.
IF you are reasonably sure of finding another suitable job, take the money and run.As regards the financial side of things I strongly recommend taking a look at the Finance forum on PH. Lot's of useful information/input available there and, best of all, it costs absolutely nothing.
simon_harris said:
bear in mind that the general employment landscape out there is not good and getting a new job (especially if you are an older person ie 50+) is not always an easy thing to do.
I hear that banded around a lot, I'm in that category and taking redundancy and interviewed for 2 jobs - been offered both.Use AI to hone your CV and cover letter, remove dates of school and earliest jobs off CV - to prevent being screened out.
Took it last year, too good to refuse given long service etc, f
k the new regime and their culls of long serving staff because they are expensive. Ex-colleagues are having to reapply for their existing jobs at the moment - fk that. If it makes economic sense, then get out while you can and run into to the sunset.
In my sector - HE - the grim reaper is ever present with his machete, so it was a no brainer back then to take it. Haven’t looked back since. Don’t give two fks or even one fk. Did a one off lecture a few weeks back,,and that was fun, and I was paid. HE isn't going to get any better any time soon, so get the fk out and take the money while you can.
k the new regime and their culls of long serving staff because they are expensive. Ex-colleagues are having to reapply for their existing jobs at the moment - fk that. If it makes economic sense, then get out while you can and run into to the sunset. In my sector - HE - the grim reaper is ever present with his machete, so it was a no brainer back then to take it. Haven’t looked back since. Don’t give two f
ks or even one fk. Did a one off lecture a few weeks back,,and that was fun, and I was paid. HE isn't going to get any better any time soon, so get the fk out and take the money while you can. Panamax said:
IF you are reasonably sure of finding another suitable job, take the money and run.
I'm not, however I've not been particularly happy in my current role over the past 12 months, compounded by a couple of work related injuries which still niggle day to day and there's little to no flexibility which makes being a parent tough too. Plus there is just a general feeling of unease and career progression where I am seems pretty unlikely. Away from work, we have discussed relocating (my employer "may" support a move but no guarantees) and so this recent news is perhaps the final push needed. The money isn't good, though perhaps the offer is ok but my short service (5yrs) means I won't be retiring on it plus I'm 44 so assuming I take it and I'm accepted, I would be able to survive for a few months (which may lends itself well to moving) and my wife has a reasonably good role and can move areas with it pretty easily so we'd have something coming in.
I'd also be happy to take a part time role / step back for a bit until we fin our feet post move and then once settled, look to do something a bit more meaningful be it within the same industry or just grow a set, start believing in myself and look to do something more fulfilling.
Pros and cons and yes, something I really need to consider but I can't map out my next move as a) my acceptance may be rejected and b) relocating is a bit of a gamble in itself so we may not find a house... so could be a leap of faith. However, staying as we are doesn't really appeal on various levels.
Thanks
What to ask for? More.
Don't ask, don't get and there is no harm (although a month a year is good, more is better).
You will also get your notice (probably PILON) and any outstanding holiday pay.
Also bear in mind that your first 30k will be tax free thus is really worth potentially 7 months of work income...
But get some feelers out for a new job and check with them they won't have clauses in there that preclude you from having a job offer, just in case....
Don't ask, don't get and there is no harm (although a month a year is good, more is better).
You will also get your notice (probably PILON) and any outstanding holiday pay.
Also bear in mind that your first 30k will be tax free thus is really worth potentially 7 months of work income...
But get some feelers out for a new job and check with them they won't have clauses in there that preclude you from having a job offer, just in case....
Jasandjules said:
But get some feelers out for a new job and check with them they won't have clauses in there that preclude you from having a job offer, just in case....
The issue I have (if it's even an issue) is that voluntary redundancy has been offered however it may be refused... so really, till sort of mid January when they decided who out of those who have stepped forward is staying or leaving, then really I'm unable to plan ahead. I honestly rather not be involved in a "wait and see" process but that's just how it is. Or I remain in my role and look to relocate if we move house, but they may refuse in which case I'd be leaving with nothing.... or staying where we are house wise and remaining in the role. Or they may agree that I can relocate. Head's a bit of a mess with it all just now.
How niche or specialist is your role?
My wife has been looking for a new role whilst in her current and zip in the past 10 months.
When you get to a certain age ageism definitely pushes past any other prejudices.
Can you push for 5 months of salary plus statutory or is stat included in their 5 months offer?
My wife has been looking for a new role whilst in her current and zip in the past 10 months.
When you get to a certain age ageism definitely pushes past any other prejudices.
Can you push for 5 months of salary plus statutory or is stat included in their 5 months offer?
Davie said:
Head's a bit of a mess with it all just now.
Yes this is often the hardest part. You have to consider you are going.. But that is not guaranteed (although usually those who volunteer get it but sometimes you get a massive uptake and so not all get it). But it does not hurt to open options elsewhere if they are available....
Hugo Stiglitz said:
How niche or specialist is your role?
I work for a very large telecoms company so negotiation is very unlikely. Role wise, pretty skilled in that field so there's scope to look at the competition or perhaps expand into a similar role with utilities. Previous experience has been mostly motor trade, after sales plus salvage management. Did a decade of car based journalism too a few years back. However, also very open minded and willing to do something different - Forestry Commission sort of industry has always appealed. Brother in law is a year into running his own driving school and is making noises about me joining as he's flat out. Equally would be happy doing something part time / short term... driving jobs, B&Q, Highlands tour guide... Again issue is the lack of being in control of my own destiny makes forward planning tricky. My wife could increase her hours and she's keen I be a bit more present for the kids as their younger years are hurtling past. I'd love to be able to drop a day, which may actually be viable if we move / have more family help as she could do a bit more
But just now it all feels like speculation which is hard as I do like to overthink and procrastinate so waiting is tricky.
Hugo Stiglitz said:
I always wanted to be a Canadian Lumberjack. At 44, not a chance! British weather 2/3s of the year is lile exposure/coldness to the bone.
You sound like you could transfer - start applying now Id say
Were you inspired by the song? Sleeping all night and working all day?You sound like you could transfer - start applying now Id say
Davie said:
Morning,
Must be the time of year for it but I have been offer voluntary redundancy from my role. Details seems a tad sparse thus far however one months wage for every year of service has been offered. I've been with my employer for five years. The closing date is January but the actual leaving date remains to be agreed / details to follow.
The back story, briefly, is that we have been considering moving house in the new year for family reasons. My employer would potentially support a relocation however there is no guarantees. The job has become less enjoyable of late plus a couple of fairly trivial health issues have made the role more of a challenge and I have found myself questioning if its something I want to do or indeed could do for the foreseeable future.
Based on that, I'm now swaying towards taking the offer however I'll openly admit, I'm a bit uneducated in such matters and hence have my concerns / I'm not sure on what I need to be aware of / what the pitfalls are. I'm working on the basis that a) the job may beat me in due course and b) if we move, the role may not be available to me thus I'll have to resign... hence, given the timescales, taking the offer does make some sense.
We're in the fortunate position that we have no mortgage, no car payments, no credit cards etc... thus I'm not too concerned about the short term effects and in some ways, if it worked out to plan then I'd be looking to have some time off to move house etc then beyond that, I'm keen to look elsewhere, possibly reducing my hours / wife is looking to increase hers. However, it's all a bit of a leap of faith.
In short, hoping for some pointers as to what to be aware of with the process, what to ensure I have in place, what to ask etc - we've been offered some guidance in due course however I'm currently looking to enlist a financial advisor for a bit of a health check but also looking for input from those who have been down a similar path / are aware of any pitfalls that I may not be.
Thanks
There are lots of redundancies going on at the moment it seems. I am being made redundant at my place albeit on a much worse package than you are looking at! I've been applying for jobs left, right and centre - 35 to date. Im an early 30's specialised engineer with nearly 10 years experience in my field and I'm finding it tough to find another job at the moment. That said as the graph below shows, January is one of the best times to be applying for a new job, and an employee market rather than an employers market it seems.Must be the time of year for it but I have been offer voluntary redundancy from my role. Details seems a tad sparse thus far however one months wage for every year of service has been offered. I've been with my employer for five years. The closing date is January but the actual leaving date remains to be agreed / details to follow.
The back story, briefly, is that we have been considering moving house in the new year for family reasons. My employer would potentially support a relocation however there is no guarantees. The job has become less enjoyable of late plus a couple of fairly trivial health issues have made the role more of a challenge and I have found myself questioning if its something I want to do or indeed could do for the foreseeable future.
Based on that, I'm now swaying towards taking the offer however I'll openly admit, I'm a bit uneducated in such matters and hence have my concerns / I'm not sure on what I need to be aware of / what the pitfalls are. I'm working on the basis that a) the job may beat me in due course and b) if we move, the role may not be available to me thus I'll have to resign... hence, given the timescales, taking the offer does make some sense.
We're in the fortunate position that we have no mortgage, no car payments, no credit cards etc... thus I'm not too concerned about the short term effects and in some ways, if it worked out to plan then I'd be looking to have some time off to move house etc then beyond that, I'm keen to look elsewhere, possibly reducing my hours / wife is looking to increase hers. However, it's all a bit of a leap of faith.
In short, hoping for some pointers as to what to be aware of with the process, what to ensure I have in place, what to ask etc - we've been offered some guidance in due course however I'm currently looking to enlist a financial advisor for a bit of a health check but also looking for input from those who have been down a similar path / are aware of any pitfalls that I may not be.
Thanks
I've been pretty stressed, first baby on the way in a few months time, rather large mortgage and going into the new year unemployed with a redundancy package that is the absolute bare minimum they could get away with. It should give me around 2 months pay at my current salary then i'll be living off savings if I cant secure another role!
Yes, one month per year is a crazy offer by comparison to a lot.
Although I did once get more than that as they announced the redundancies, then remembered they were contractually obliged to deliver a project which needed those of us they were finishing, and we'd already found other jobs. Careful negotiations for a big bonus for completing the project before leaving ... very lucky, a good market and we were all quite young (which makes it easier to find a new job - organisations being a triangle in structure)
It's a tough market now, however, I do know a few people have recently found roles, so it's not impossible. Also remember that redundancy pay is tax-free, so "4 weeks' pay" is more like 6 weeks' pay. And you should get a chunk of tax back since you will have been paying on the assumption that you earn for the entire tax year, so will have overpaid. That can be a substantial overpayment in some cases.
Although I did once get more than that as they announced the redundancies, then remembered they were contractually obliged to deliver a project which needed those of us they were finishing, and we'd already found other jobs. Careful negotiations for a big bonus for completing the project before leaving ... very lucky, a good market and we were all quite young (which makes it easier to find a new job - organisations being a triangle in structure)
It's a tough market now, however, I do know a few people have recently found roles, so it's not impossible. Also remember that redundancy pay is tax-free, so "4 weeks' pay" is more like 6 weeks' pay. And you should get a chunk of tax back since you will have been paying on the assumption that you earn for the entire tax year, so will have overpaid. That can be a substantial overpayment in some cases.
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