When does voluntary redundancy occur in the workplace?

Voluntary redundancy occurs when an employee volunteers or agrees to be made redundant. While such a decision may seem counter-intuitive, such employees often have very sound reasons why it is the right choice for them. For example, an employee might be only one year from retirement.

Can a company claim unfair dismissal for voluntary redundancy?

This means that you may be at risk of an unfair dismissal claim if an employee argues that it was not a genuine redundancy (or that they were forced/pressured into a ‘volunteering’ to be made redundant. However, you can avoid this potential exposure in the process of voluntary redundancy by requiring employees to sign a deed of release.

What happens to my mortgage after voluntary redundancy?

Voluntary redundancy is usually excluded, meaning they won’t pay your mortgage payments after your redundancy. You can ask to be made compulsorily redundant instead – contact your nearest Citizens Advice if you need help speaking to your employer or understanding your options.

What can I do if my employer selects me for redundancy?

You may be able to make a claim to an employment tribunal for unfair dismissal. It’s up to your employer whether they actually select you if you volunteer for redundancy. Your employer cannot just offer voluntary redundancy to age groups eligible for an early retirement package – this could be unlawful age discrimination.

How long is the voluntary redundancy notice period?

Voluntary redundancy notice period. This will largely be dependent on how long you’ve been with the company. However, as a general guideline, the statutory redundancy notice period is: One week’s notice (for those employed between one month and two years)

Do you get paid on voluntary redundancy if you are part time?

Fixed term employees If you are employed for a fixed term, you will normally receive the same compensation payment on voluntary redundancy as a permanent employee with the same pay and service, but this depends on the terms of your contract. Working part time

How does voluntary redundancy work in the modern world?

In a world characterised by technological innovation, industries can change rapidly. Therefore, employment is not, and never can be, certain. As a result, redundancy – including voluntary redundancy – becomes an increasingly common occurrence.

What should I do if I am made redundant after 5 years?

Often it will mean talking to a professional – an accountant, financial adviser or counsellor – to discuss your options. The money can be enticing; generally, if you’re made redundant after five years or more with the company, you’re entitled to part of your long service entitlements, paid pro rata.