Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Voluntary redundancy/severance


MrXxx

Recommended Posts

Company just announced this and looking for willing participants (although not guaranteeing success). Just wonder what people's thoughts/advice/experiences were I.e statutory is 1.5x weekly salary for every year, so what would a good deal look like?...and no, it doesn't look negotiable.

Link to comment
Share on other sites

Chewing Grass

Been binned twice from my only two staff jobs.

1 was great 3 months in lieu of notice (state industry with nuke proof contract) plus 1 month for every year worked, people queued up to leave.

2 was shit 1 month in lieu plus 1 week for every year.

Sometimes if they don't want a fuss they will sweeten it.

I would ask for 1 month in lieu of notice plus the 1,5 weeks pay per year.

How many weeks will you bag?

Link to comment
Share on other sites

8 hours ago, Chewing Grass said:

Been binned twice from my only two staff jobs.

1 was great 3 months in lieu of notice (state industry with nuke proof contract) plus 1 month for every year worked, people queued up to leave.

2 was shit 1 month in lieu plus 1 week for every year.

Sometimes if they don't want a fuss they will sweeten it.

I would ask for 1 month in lieu of notice plus the 1,5 weeks pay per year.

How many weeks will you bag?

The offer is 1 month per year, but no in lieu I.e you are expected to run to your notice period...not negotiable (i know this for sure)...my general impression is that its meh!...but if they don't get enough VS they are talking about compo...not sure how true this is (would look bad PR in our industry) and don't think this would affect me; only reason they would accept me for VS is that they could make some £s savings by employing somebody cheaper.

Link to comment
Share on other sites

1 minute ago, MrXxx said:

The offer is 1 month per year, but no in lieu I.e you are expected to run to your notice period...not negotiable (i know this for sure)...my general impression is that its meh!...but if they don't get enough VS they are talking about compo...not sure how true this is (would look bad PR in our industry) and don't think this would affect me; only reason they would accept me for VS is that they could make some £s savings by employing somebody cheaper.

That’s very good in today’s climate. The statutory is a week and in my experience, this is what they will pay (we have had a couple of rounds at work). 

Depends on current circumstances. I would snatch their arm off for that. 

Link to comment
Share on other sites

8 minutes ago, One percent said:

That’s very good in today’s climate. The statutory is a week and in my experience, this is what they will pay (we have had a couple of rounds at work). 

Depends on current circumstances. I would snatch their arm off for that. 

SP is a week/yr for under 40s, 1.5 for over...and what you need to factor in is how long in today climate will it take to get another job ...

...an example, say you get 3 months pay off, that gives you a 3 month window to find a job to break even BUT stay/drag a comp redundancy out for another 3 months (easily done if you challenge the employers decision) and you also get your pension contributions as well AND the 1.5 wk/yr statutory payment...

...I initially thought like you I.e that's good in the current market, but when you consider the practicalities non-VS may offer a greater reward when you total up the balance sheet.

Link to comment
Share on other sites

7 minutes ago, MrXxx said:

SP is a week/yr for under 40s, 1.5 for over...and what you need to factor in is how long in today climate will it take to get another job ...

...an example, say you get 3 months pay off, that gives you a 3 month window to find a job to break even BUT stay/drag a comp redundancy out for another 3 months (easily done if you challenge the employers decision) and you also get your pension contributions as well AND the 1.5 wk/yr statutory payment...

...I initially thought like you I.e that's good in the current market, but when you consider the practicalities non-VS may offer a greater reward when you total up the balance sheet.

It depends on life circumstances. I’m over 55 just and I think the rules of my pension scheme means they would also have to give me the pension.  No brainer for me. Sadly, my employer would never offer it 

Link to comment
Share on other sites

3 minutes ago, One percent said:

It depends on life circumstances. I’m over 55 just and I think the rules of my pension scheme means they would also have to give me the pension.  No brainer for me. Sadly, my employer would never offer it 

Yes, good point, unfortunately I am just a little too young for that! :-)...but as you say if at 55 they allowed a full pension without early claim penalty that would be a no brainer!...first time I have found myself wishing I was a little older :-) :-) :-)

Link to comment
Share on other sites

2 minutes ago, MrXxx said:

Yes, good point, unfortunately I am just a little too young for that! :-)...but as you say if at 55 they allowed a full pension without early claim penalty that would be a no brainer!...first time I have found myself wishing I was a little older :-) :-) :-)

Sadly I doubt the would offer it. 

Im practising for retirement though. 

Link to comment
Share on other sites

21 hours ago, MrXxx said:

Company just announced this and looking for willing participants (although not guaranteeing success). Just wonder what people's thoughts/advice/experiences were I.e statutory is 1.5x weekly salary for every year, so what would a good deal look like?...and no, it doesn't look negotiable.

When do you plan to retire and so relatively how much more would you earn if you stayed on?  How much do you value that extra time, etc?  Is it worth it?

Is the company going down the pan and you could possibly end up out (maybe with many others) with even less?

There's the headline money and then there's the more negotiable other stuff!

o What kind of notice period?  Always good, at a minimum to get it paid as well, or put on garden leave for the duration.  No right minded employer wants a leaver hanging around.

o Presumably accrued annual leave and overtime will be paid.

o Any chance of going back on a contract!

o Outplacement provided?

o Any bonuses or share incentive schemes will be paid up?

o First £30k of redundancy is tax free (please check).

o Does it compromise your ability for bennies like JSA?

o Will you be paying any of the lump sum into your pension?  If so, make sure you have sufficient "relevant earnings" in the tax year to cover this (may impact your leave date).

Everything is always negotiable!  Maybe wait and see (but then I hoped once and they refused to offer it to me!).

Think really hard about doing it if you don't have a really good plan for the post redundancy next steps.  You lose the mojo very quickly and daytime TV beckons!

Link to comment
Share on other sites

On 27/02/2019 at 21:12, MrXxx said:

Company just announced this and looking for willing participants (although not guaranteeing success). Just wonder what people's thoughts/advice/experiences were I.e statutory is 1.5x weekly salary for every year, so what would a good deal look like?...and no, it doesn't look negotiable.

How old (roughly) are you?

And how much relative to   salary would the payout be?

 

Link to comment
Share on other sites

24 minutes ago, spygirl said:

How old (roughly) are you?

And how much relative to   salary would the payout be?

 

50..& it would be three months.

Link to comment
Share on other sites

3 minutes ago, MrXxx said:

50..& it would be three months.

Not a no brainer then.

I guess youve only been there a few years.

Ive seen some deals - and they still are there - where people 55+ whove worked for 30+ years plus have been offered 1month per year + plus salary for the notice. So, someone who'd been at a place 30 years would get 2.5 years redundo  cash + pay for 2.5 year -  5 years cash + pension made up to 60. Not bad at 55 when these people then went onto to get higher paid jobs

Link to comment
Share on other sites

Kurt Barlow
On 28/02/2019 at 07:32, MrXxx said:

The offer is 1 month per year, but no in lieu I.e you are expected to run to your notice period...not negotiable (i know this for sure)...my general impression is that its meh!...but if they don't get enough VS they are talking about compo...not sure how true this is (would look bad PR in our industry) and don't think this would affect me; only reason they would accept me for VS is that they could make some £s savings by employing somebody cheaper.

You don't actually do any work in that notice period apart from appearing to do a bit of work:P

Just use it to apply for new jobs, tidy up your CV, sort out your tax return etc. 

Link to comment
Share on other sites

Kurt Barlow
On 01/03/2019 at 07:47, spygirl 🏆 said:

Not a no brainer then.

I guess youve only been there a few years.

Ive seen some deals - and they still are there - where people 55+ whove worked for 30+ years plus have been offered 1month per year + plus salary for the notice. So, someone who'd been at a place 30 years would get 2.5 years redundo  cash + pay for 2.5 year -  5 years cash + pension made up to 60. Not bad at 55 when these people then went onto to get higher paid jobs

A former colleague did this. He is 57

Took EV and walked away with 9 months salary. Bunged the part of the EV that would get taxed into his pension and the rest  into a VCT earning another 30% on that. 

After two months got a new job - 2 year FTC at just a shade under his former salary. 

Link to comment
Share on other sites

On 28/02/2019 at 07:55, MrXxx said:

SP is a week/yr for under 40s, 1.5 for over...and what you need to factor in is how long in today climate will it take to get another job ...

...an example, say you get 3 months pay off, that gives you a 3 month window to find a job to break even BUT stay/drag a comp redundancy out for another 3 months (easily done if you challenge the employers decision) and you also get your pension contributions as well AND the 1.5 wk/yr statutory payment...

...I initially thought like you I.e that's good in the current market, but when you consider the practicalities non-VS may offer a greater reward when you total up the balance sheet.

Nearly, 

The payoff is ex-gratia and So is paid tax free to employee. Three months gross could equate to about 5 or 5.5 months take home. In addition, the whole time you're not earning you're reducing your tax liability for the year. 

Another way to view it is to ask this question. Is it more likely you'll find someone to give you 15k tax free or a job?

Link to comment
Share on other sites

11 hours ago, Adarmo said:

Nearly, 

The payoff is ex-gratia and So is paid tax free to employee. Three months gross could equate to about 5 or 5.5 months take home. In addition, the whole time you're not earning you're reducing your tax liability for the year. 

Another way to view it is to ask this question. Is it more likely you'll find someone to give you 15k tax free or a job?

I knew about the £30k tax free (although this can depend on how they pay you/set it up), but I hadn't considered the period use as reducing tax liability for the year...thanks for your thoughts all.

Link to comment
Share on other sites

2 hours ago, MrXxx said:

I knew about the £30k tax free (although this can depend on how they pay you/set it up), but I hadn't considered the period use as reducing tax liability for the year...thanks for your thoughts all.

First £30k of any non contractual payment is ex-gratia so PILON is taxable but addition notice pay is not, nor is a severance settlement etc. If they don't set it up that way then speak to their accountant since it's easier for you to get them to fix it than it is for you to get on to HMRC. 

We had a round of redundancies a year ago and while most just rolled into new jobs a selection of older staff were in a position that they could set up on their own and o consultancy/contracting work. We also paid for several people to get some training, CV support etc so there's a lot you can negotiate. They would much sooner get people doing this voluntarily and be able to reassure the rest of the staff that it's done. Having supported the finance and HR functions through ours and seeing the consequence of productivity and motivation you could probably bump up your package since it's saving them a lot of time and trouble.... don't expect mega bucks but the little things I mentioned above, possibly an enhanced multiplier of the redundancy calc etc.  

Good luck with it and let us know what you decide (and if you want any more advice I'm never short of an opinion ;) ).

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...