Redundancy questions

[Downinthedumps]

Hi,
I have just been told that it is possible that a section in my company will be made redundant.

Now....we have been told that we can ask for voluntary redundancy....but does anyone have any ideas as to why my employer would offer this when the compulsory redundancy would mean they would get away with paying less?

This isnt a case of the company feeling bad so offering a better package, as they always try and get away with paying the least they can....Im just wondering if there is some kind of hidden agenda....oh and it's also not a case of them hoping some people will leave and they can continue employing ones that dont.

Any ideas anyone?

Thanks

[Weird Al Yankovic]

Why would compulsory redundancy pay less than voluntary?

I took voluntary redundancy years ago as I had something lined up. Maybe your employer is trying to reach out to those first who also have something lined up rather than use some other selection, such as last in-first out.

[Ell-enn]

Hi there, it is usually considered "best practice" to ask for volunteers. However, the employer is not obliged to grant redundancy to any employee who does volunteer as they will not want to lose key skills. Sometimes, for reasons of their own, an employee may want to take redundancy (another job family commitments etc) and if they are not key to the business then letting them go could save a more skilled employee from being made compulsorily redundant.

[Downinthedumps]

Originally Posted by Weird Al Yankovic

Why would compulsory redundancy pay less than voluntary?

I took voluntary redundancy years ago as I had something lined up. Maybe your employer is trying to reach out to those first who also have something lined up rather than use some other selection, such as last in-first out.

Unfortunately there is no selection process as it's the whole section that is going. Voluntary will be a better package as compulsory will only be 7 wks pay for me...I think they will make the offer slightly better for voluntary.

I just wondered if it affects how the company looks etc if they go down the compulsory route.

Originally Posted by Ell-enn

Hi there, it is usually considered "best practice" to ask for volunteers. However, the employer is not obliged to grant redundancy to any employee who does volunteer as they will not want to lose key skills. Sometimes, for reasons of their own, an employee may want to take redundancy (another job family commitments etc) and if they are not key to the business then letting them go could save a more skilled employee from being made compulsorily redundant.

Understand your point but sadly this is not the case in this situation as the whole section is going and believe me, the CEO is not a caring person so I cant help but wonder if there is an underlying reason to the voluntary request.

[Ell-enn]

Hi there, I can't think of any particular reason for asking for voluntary redundancies (at the moment!) other than what WAY and I have already said.

However, volunteering for redundancy can cause a problem if you have redundancy payment protection insurance on your mortgate or loans - most (if not all) companies won't pay out if you are not made redundant compusorily.
Any further questions, please don't hesitate to ask.

Kind Regards

Ell-enn
If I have been of any help please feel free to tip my scales

[Downinthedumps]

Well after all that, the voluntary offer was exactly the same as the compulsory one apart from the fact that I wouldnt have to work my notice.

How great is that offer...not!

If anyone in here is a specialist in employment law I would be grateful if you would PM me as I have a situation I would like to discuss that I dont want to post on open forum.

Thanks