When an employer announces potential redundancies, employees can find themselves facing difficult decisions. For some, the situation is made even more complicated if they were already considering leaving their role before the redundancy process began.
In a recent Daily Mail and This is Money article, Bellevue Law Senior Consultant Imogen Finnegan shared her insights on the factors employees should weigh when deciding whether to accept voluntary redundancy or remain in the process and wait to see whether compulsory redundancy follows.
Understanding the Difference
Voluntary redundancy occurs when an employer invites employees to leave the business in return for a redundancy package. Employers may offer enhanced terms to encourage volunteers, although this is not always the case.
Compulsory redundancy, by contrast, occurs when an employer selects employees for redundancy following a formal consultation and selection process.
While voluntary redundancy can provide certainty and allow an individual to leave on agreed terms, employees should carefully consider whether accepting an offer is in their best interests.
Factors to Consider
No two situations are the same, but some key questions employees should ask include:
- Is the voluntary redundancy package more generous than the statutory or contractual entitlement?
- How likely is it that they would be selected for redundancy if they remain in the process?
- Do they already have another role lined up or realistic prospects of securing alternative employment?
- Would staying in employment for longer provide additional financial security?
- Are they prepared to lose the opportunity to challenge any unfair redundancy process by volunteering to leave?
Financial considerations will often be front of mind, but employees should also think about career plans, wellbeing and job market conditions.
Can You Negotiate?
In some circumstances, employers may be willing to negotiate the terms of a voluntary exit, particularly where they are seeking to reduce headcount quickly or avoid prolonged consultation processes.
Employees may wish to seek legal advice before agreeing to any package or signing a settlement agreement. Understanding the value of redundancy payments, notice pay, accrued holiday and any restrictive covenants can help ensure they make an informed decision.
Seeking Advice Early
Redundancy situations can move quickly, and decisions made at an early stage may have long-term consequences. Obtaining advice before accepting a voluntary redundancy offer can help employees understand their rights, assess the options available and make a decision that aligns with their personal and professional circumstances.
Read the full articles here;
My job is at risk but I already want to leave – should I take voluntary redundancy or wait? MSN
For tailored advice on redundancy, restructuring or settlement agreements, please contact the Bellevue Law team.
