voluntary / compulsory redundancy pay?

[babycatcher]

My companies redundancy agreement detailing compensation I am entitled to does not differentiate between voluntary and compulsory redundancy ie it doesnt say anywhere that voluntary compensation will be different. the only difference is that PILON is only payable in compulsory situations.

They have just offered me a much lower voluntary payment. Can they do this?

[Guest Old_andrew2018]

IMHO there should be no difference, however I am not expert in these matters.

If you do not recieve replies you might consider sending a PM to forum contributers with expertise in HR issues, you should include a link to your thread.

 

Andy

[elche]

hi babycatcher,

 

The simple answer is, if the vol red scheme is not more attractive than the compulsory red scheme, what incentive would an employee have to opt for the vol scheme?

 

Thus normally a vol red scheme is more generous, but there is nothing in law to say it must be.

 

In reality, if you don't feel the vol scheme is generous enough, then do not volunteer for it; it is after all, voluntary!

 

Che

 

NB and do not forget if you have for example, mortgage protection insurance etc, then such policies often do not pay out if you have volunteered.

[babycatcher]

Thanks for replies. I thought the same that as my contract does not differentiate payments should be the same.

 

Also by law I thought that volunatry redundancy was still classed as redundancy so had to be treated as such which would mean my employer was actually breaching my contract by trying to offer lesser terms ??

 

This is such a mine field I dont know what to do next! The other issue i have is the lower offer is only applicable to people who have dropped their hours or salary in the last 3 years as the part of the terms they are ignoring is how the pay is calculated. Mine should be best pay of the last 3 years according to contractual terms. I think there is also a discrimination issue??

[kfdh1962]

voluntary redundancy packages are usually enhanced to encourage volunteers to come forward, as che stated , if the package is not more attractive than the compulsory package then there are very few reasons that would encourage an employee volunteer...

 

legally however they do not have to be the same..

 

redundancy payments should be made up of two payments... your redudancy pay and your contractual notice if you are paid in lieu of notice... the law sets out statutory minimum payments in relation to redundancy, and also for notice however if your contract provides for more than the government rules on notice then the contract terms apply..

 

as long as your employer is complying with th eprovisions of your contract relating to notice, then i dont see how there would be a breach of contract..

 

as che says, if you are not happy with the package, dont volunteer and see what comes out of the selection process..

Edited September 3, 2009 by kfdh1962

[kfdh1962]

claculation of pay should as you rightly say comply with the provisions of yoru contract.

 

i notice you mentioned possible discrimination.. in what particular way do you feel their may be discrimination?