Voluntary Redundancy

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Rachel18

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The company I'm currently with has given me notice that my role will be terminated early next year. I can apply for other jobs in the company, but chances are it will be a lower grade, hence lower wage of about 9k per year.

They have shown me my redundancy package if I am to be made redundant, it is in excess of 60k. My current wage is 38k with health and pension benefits. I have 2 young kids, and have a restructured mortgage (split) which is currently under 3 year review, I have completed sfs form. I'm so unsure of what to do for the future, there doesn't seem to be a lot of jobs available in my area. I am willing to up skill myself, but would I be mad to leave my current job, with no possibility of another job, but it sure is hard to say no to redundancy package. Could you advise your thoughts by any chance from a financial standpoint?
 
You might not think this now but you have (most likely) built up a lot of marketable skills over the past few years.

If you manage to get a job relatively soon that 60k will be like getting a signing on bonus.

Do up your CV and speak with a few recruitment consultants about opportunities in your area.

This can be a worrying time but try have confidence. It always seems you won't be needed out there but something suitable will turn up. Get started on your search now. You have a couple of months at least to look around.
 
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One concern I have is that I'm on a split mortgage which is under review, chances are mortgage will do another review in a years time as I'm currently off work sick. If I get redundancy, mortgage lender will want that money, if I dont find a job, I wont be in a good position, hard when you have 2 young kids
 
  1. is it really voluntary as you say your role will be terminated? (fyi this impacts your ability to claim unemployment benefits for first few weeks( max 9 ) if under age 55 ( I assume you are) and package >50k as yours is .. see here... http://www.welfare.ie/en/Pages/jajbfaq.aspx#q9)
  2. are others being made redundant too ?
  3. ...are you off sick long and are your being made paid ? ,,,(as FYI sometimes companies use redundancies as a way of dealing with employees out sick long term....of course that may not be the case here ….)
  4. However I see 60k/38k= 157% of salary which seems generous ….are you there long?
 
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mtk said:
  1. is it really voluntary as you say your role will be terminated? (fyi this impacts your ability to claim unemployment benefits for first few weeks( max 9 ) if under age 55 ( I assume you are) and package >50k as yours is .. see here... http://www.welfare.ie/en/Pages/jajbfaq.aspx#q9)
  2. are others being made redundant too ?
  3. ...are you off sick long and are your being made paid ? ,,,(as FYI sometimes companies use redundancies as a way of dealing with employees out sick long term....of course that may not be the case here ….)
  4. However I see 60k/38k= 157% of salary which seems generous ….are you there long?
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1. Yes it is voluntary as they are giving me the opportunity to apply for other jobs in the company, unfortunately there are little or no opportunities showing for the grade level I'm at, chances are I ll have to take a lower grade with a pay cut. I am under 55 years of age.

This wouldn't bother me too much as I ll be able to claim FIS. And the lower job that I have applied for will be stress free, it's a great company with health and pension benefits.

2. Yes, there are a few others doing same job as me and they have to find another job or take redundancy, current job is being automated.

3. Off sick since June, I'm being paid social welfare together with income protection insurance.

4. I'm with the company 14 years, it's very generous. Which is the reason it's hard to say no to. If I had no kids, this decision would be easier. But with kids, good to be in a job with good hours and is flexible. Was looking at working from home but nothing that matches my current skills, also I dont have an office, my house is small.

Not living near dublin, harder to find work.

I have constant headaches trying to figure this out, I have an interview coming up within the same company, if I get it, then I can't get redundancy package
 
Just some thoughts of a disgruntled leper (no offence is meant to anybody):-
1. Take the money and run. Don't even return for the back slapping, sick inducing Christmas party.
2. You have no guarantee of winning the lower paid and lower grade job. However, you know best so apply if you wish.
3. If you are successful in the lower grade competition, you will be constantly reminded of your higher position and expected to be head and shoulders above the rest although you will now have less responsibility and less earnings. You will have to face your former higher grade colleagues and lower grade colleagues every minute.
4. You have a responsible position to show on your CV, use it; a move to lower grade lessens that.
5. Getting the shove is not a good place to be irrespective of payout. Secretly, some of your colleagues will be happy that you're on the move out or downwards thinking that a bigger more secure pot is there for them. How long will it be before your colleagues get the shove? I bet it ain't far away.

You sound like a loyal worker who gave your best for the company. Unfortunately, your loyalty means nothing now. In looking for a new job use your experience, your skills etc. Go back to college and upskill if necessary. I empathise with your position and wish you only the best. Put yourself in a position where you can look back, smile and be a villain.
 
Also, if you choose to look for another job (outside the company), be sure to have the start date after the voluntary redundancy. Also, do not tell anyone in your current company about the new job. I don't know if they would, but if they knew you have accepted another job, then they might not have to pay the redundancy. I'm thinking worst case scenario, and I don't know if it's even legal.

And I don't think it is voluntary, if they are telling you that you are being made redundant. The ability to apply for other jobs within the company is irrelevant (in my opinion). What's to stop you from applying for them if you weren't being made redundant?
Voluntary redundancy is where you can choose to be made redundant, e.g. where they are 10 people working in a department and they now want to reduce it to 5. They are asking for 5 people to volunteer to leave. In your case you, and the rest of your department, are being told you are leaving, ability to go for a lower grade job notwithstanding.

I'm with Leper on this one, take the money and run. You have a few months to look for another job, and a cushion if you don't get one before leaving. If you have been with the same company for the past 14 years, I'd also suggest getting professional help with your CV and job interview skills, it really helps.

Good luck whatever you decide.
 
People don't get made redundant, positions get made redundant. If your position is made redundant and your employer is not willing to move you to another role then I think you have a strong case for asking that your redundancy is compulsory and as another poster said elsewhere, this will impact on your social welfare payments

Secondly, ask your employer what support will they give in terms of placement/recruitment agency advice in advance or immediately after you leave. Many multionationals are very good with this and it can be beneficial

On health insurance, ask when does it cease, it is at the end of calender year, financial year or when you leave? You should be able to get your current scheme transferred into your name- sugest you reach out to the provider and ask if you can.

From the sounds of your post, tax will be minimal on what you will get so I agree with what others are saying, take the money. As for the mortgage, I recommend you take independent legal advice on that.
 
I would agree with other posters. This does not fall under the category of voluntary redundancy. If they want to keep you, they should be moving you across to one of the other positions at your current salary. Offering you the chance to apply for other positions with a lower salary is just a disguise.
 
Thanks everone for taking the time to read my post and giving me such helpful responses, guess I need a little courage to take the leap and either do courses to up skill or find a new job
 
Make sure you get everything in writing. Get it checked over and ensure you get all the info possible. Make sure if you do go down the redundancy route the tax is calculated right - ask for a mock payslip in advance. Ensure you letter from them allows you to claim benefits from day 1.

Once you have left it is very hard to get any help / info from hr / payroll.

Look into springboard courses that you can do online and distant learning and lastly best of luck whatever happens!
 
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