Forum menu
juanking, sometimes taking control like that can be quite positive, what crushes lots of people is the uncertainty and lack of control. My wife opted for voluntary some years ago, somehow meant she was leaving on her terms. Still a big decision.
Juanking, I’d jump at 2 years pay. Gives you plenty of time to retrain or at least try a few things and make some mistakes before the money runs out.
At 48 I suspect you’d still need to work but 2 years pay gives you time to find something you actually want to do.
Juanking..
similar here. 47, with 24 years in my industry. Seriously debating sticking my hand up for voluntary. I’ve not seen the offer yet but I must be up for two years Salary
problem is I don’t think I’ll get it....there’s a fair amount of dead wood that really should go, I suspect I’m to useful to go on my terms...
Thanks guys, done all my sums and think we could pay off the mortgage and survive until accessing (cashing in my final salary) pension at 55. My wife is to be made redundant next Friday so we are at a decision point really. Tbh, I'm not sure I'd get approval for EOI but part of me would like to carry on working to build up more capital for our daughter but part of me remembers the 4 months of chemotherapy I went through so maybe now is the time to head off and enjoy life.
Mrs F will be out of a job come sometime September to October. No jobs, even in Accounting & Finance at the moment.
I would have thought insolvency would be very busy now, isn't that very similar skill set?
- Martyn - you *may* find that - in order to limit the payouts to around years salary expenditure - the package is capped at one month per year's service *up to 12 years* - I got made redundant, on good terms, but the capped limit did hit me (and only me, which seemed a bit mean). A year's payoff is not to be sniffed at though!
Juanking sounds like you have a good plan there, enjoy it. Very different circumstances but I enjoyed taking voluntary in 2012, really nice to be able to close the pool I was in as I had some good colleagues in with me. I had another job lined up on the day I told the firm I was taking redundancy.
I was very lucky. Hoping to dodge redundancy this time round though, luckily I'm seconded into another team at the moment with lots of work on.
To everyone facing it, its nerve wracking but like said before everyone I know who has gone through it has ended up in better place shortly afterwards. Fingers crossed for you all.
Had my figures through for redundancy today.... not a lot! We gat a months pay in lieu of notice... anyone know if I'm taxed on this months pay and the redundancy? Its particularly galling with Airbus core lads getting offered 4weeks redundancy for each year of service whereas contractors doing exactly the same job alongside them get statutory minimum 😥
Pay in lieu will be taxed, redundancy won't be.
Redundancy pay tax free up to 30k.
I’ve been under redundancy consultation since March for 25% of our entire pilot workforce. Still don’t know any selection criteria. We do know they are only paying statutory redundancy, so after 15 years I would get just over a months pay.
Juanking I am possibly in the same organisation as you. I am going for the voluntary redundancy. I am 55 so can cash in my pension which is not huge (19 years service) but should be enough if I’m careful with it. To me 2 years pay as a golden goodbye and my pension gives me the opportunity to change things we hope to move away and start a new chapter. However I may not get it.
Good luck @aberdeenlune. If your pension is DB(final salary as is mine) with 19 years service you might be pleasantly surprised how much its worth. Not thought about 'reimagining' yourself??
My Dad took early retirement when BT were doing massive redundancies in the 1990s. As well as the redundancy pay, they were offering 18 months pay or 2 years pensionable service added to the DB scheme. As he was over 55 and could claim the pension immediately he took the latter and never regretted it- the fact the mortgage had been paid off over 10 years prior, my sis & I had left home helped.
5% going at out place just announced. I'm not bothered either way to be honest but kind of hoped for another 5 years then retire at 55. Let's see what the next 2 weeks bring.
P-Jay
Sorry to hear that OP
Reading your employers reasoning I’d be inclined it’s the usual merger loses + off-shoring to cheaper Labour.
I went through it in 2008 from Banking and again in 2012, although the latter was a hatchet job to screw me out of a big bonus I was owed.
It feels really shit, it’s daunting and even being through it twice, I wouldn’t fancy it again, but, it wasn’t that bad really. Both times I secured a ‘get me by’ job within a few days.
I've been through similar and then survived a 2015/2016 cull. I'd only been with the company 10 or so months at the time so redundancy didn't seem very interesting.
Retrospectively though I wish I had as its been quarterly redundancies and another "big Employee consultation" since.
Complete poo storm... I'd get through one to go into the next until I just had a complete breakdown from the continual stress.
dantsw13
MemberRedundancy pay tax free up to 30k.
I’ve been under redundancy consultation since March for 25% of our entire pilot workforce. Still don’t know any selection criteria. We do know they are only paying statutory redundancy, so after 15 years I would get just over a months pay.
I thought statutory redundancy was 1.5 weeks for every year worked if you’re over a certain age and 1 week if you're under it. So for 15 years, minimum of 4 months, maximum of upto 8.
I thought statutory redundancy was 1.5 weeks for every year worked if you’re over a certain age and 1 week if you’re under it. So for 15 years, minimum of 4 months, maximum of upto 8.
You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.
You’ll get:
- half a week’s pay for each full year you were under 22
- one week’s pay for each full year you were 22 or older, but under 41
- one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.
If you were made redundant on or after 6 April 2020, your weekly pay is capped at £538 and the maximum statutory redundancy pay you can get is £16,140. If you were made redundant before 6 April 2020, these amounts will be lower.
Daffy, capped at £538 per week, max statutory redundancy is £16140. So someone on a good salary, say £50k would earn £ 960 a week gross, even at 1.5 times £160 per week down. Someone on £70k would be £550 per week down. I await the comments about better paid people being able to afford it. For many unless you are over 41 with a decent length service your pay in lieu is often worth more than statutory redundancy.
Looks like I am but it's going to be a long, slow car crash.
We knew we had a finite lifespan but always assumed we would have a place to go within the same department. Turns out this isn't the case and will be competing with everyone else on site for jobs. My side will be seeing a 50% reduction after shutdown. There is also no scope for development, the latest jobs have all been filled and the chances of any more coming up are slim to nil.
But that's tomorrow. Or at least some indeterminate point 9 to 18 months in the future. As you can imagine morale is just fantastic.
@stumpyjon if you are on that much and haven’t managed to save it is hard to feel to sorry. I’m on an average uk wage and still manage to save a bit not a lot. Having said that, good luck to anyone in the redundancy boat I got done in 2009 and it’s a horrible atmosphere. I’d really think before taking voluntary in this climate.
And there you go tails, what do you know about someone's financial situation, first off people with higher incomes usually have higher outgoings, most people live to or just beyond their means regardless of income level. They may have other financial commitments, school fees, care costs for relatives. They might have had to change jobs more often, not by choice and rather than save they've had to pay back borrowing from previous unemployment. Plus people on higher incomes haven't always been at that level, might have quite recently reached those income levels so haven't been able to save much. At that level you pay a lot of tax but you're pretty much on your when it goes wrong, the state has no interest in helping you get back on your feet or helping you keep a roof over your head whilst you search for work. I've been there several times, I'd love to have savings, maybe if I'd had the luck to spend 25 years with the same employer I would, but having worked in manufacturing I've seen many businesses fold, get outsourced to Eastern Europe or beyond or constantly shrink. Ironically if you do get made redundant often you get the least pay out, those who've stayed in the same place for years get more even though they've had more chance to save.
In a similar boat and only changed to a new company in March, so looks like i will get the grand sum total of bugger all. Nice to know how many others seem to be going through this. No idea what i will do, but things will work out fine!
I also suspect a whole bunch of industrial action that will help no-one
Why won’t it help anyone? I have taken industrial action that has helped plenty.
”Why won’t it help anyone? I have taken industrial action that has helped plenty.”
so have I. In this instance, in my industry I really don’t believe industrial action will help anyone.
I never understand how making things worse between employee and employer at a time of massive stress helps. Amazingly enough the people doing the redundancies are also employees and have been told by the board how many to cull and then be expected to do the dirty work and suck up the aftermath, at board level they'll have no idea how the business will function with fewer people, that's someone else's problem. If you're a good employee they'll be gutted to see you go and would have kept you if they could, if you're not it actually makes it easier to get rid of people who play up. If a business is already in financial difficult taking is only going to make it worse.
If action is taken I can't see many companies turning around and changing their mind, in most cases, especially if a multi national it could entrench their position and potentially shut the whole business down.
But that’s tomorrow. Or at least some indeterminate point 9 to 18 months in the future. As you can imagine morale is just fantastic.
This is now happening at my wife’s/the OP’s employer. They exposed the selection criteria to the staff with a points based system in an effort to show that it was fair. So now people are asking that if they were bottom of the table and don’t get made redundant this time around, are they basically on a list for six months later?
Also, the criteria is now there to be abused. One of the measures was “No. of days sick leave taken” and the questions been asked that now people are aware they are being judged on that, will the make ill informed decisions to come to work - an issue for their health and others.
I think it’s going a bit pear shaped now, even my wife who asked for clarification of why it is her position is being judged to be removed on 1/3rd of her duties hasn’t received the response they are supposed to give by Monday. She can prove by timesheet, colleague collaboration and emails to her manager she was carrying them out, so a potential for unfair dismissal is looking likely.
The sick days is an interesting one.
Have they said how far back they're going with the sick days?
If you have long term health issues they aren't supposed to include them, or absences that are 4 weeks or over.
Will be interesting to see my score as I had to have time off for a breakdown/depression - 2 months in 2018 and 1 month in 2019. Will see if they stick to the rules......
Well that's 2 out of 3 in our house out of work. Wife first, now my son.
Apprentice for IT company, but has been stuck just handling calls with little training (only in the job 4 months before covid) but he said he was struggling in a performance review, and they've let him go.
the pay was pretty crap so he'd got himsef some hours delivering for Dominoes, but he's been working 6 evenings a week for them, and is actually making more money (per hour) - so at least he has a job, even if part time.
Tip of the iceberg this !
the pay was pretty crap so he’d got himsef some hours delivering for Dominoes, but he’s been working 6 evenings a week for them, and is actually making more money (per hour) – so at least he has a job, even if part time.
Good on him - most kids would see that as beneath them! 👍
Far, far better to be working than festering at home.
Don’t forget folks that “ Statuatory redundancy pay “ is just that.
I.e.. the minimum amount a company must pay to anyone made redundant.
As far as I am aware there is no upper limit on “ enhanced payments “ that may be offered
I.e.. the minimum amount a company must pay to anyone made redundant.
But the confusion arises when people say Stat redundancy is 1 (or 1.5) weeks pay for every year, ignoring that it is capped and based on full years service too.
Not many companies will offer enhanced rates.
Just had my wife first "meeting". My god they are rubbish. Repetitive questions regarding "where has my day to day tasks" gone were met with "other people" until I wrote on a pad for her "ask them if therefore the would have been making redundant even without covid" to which the answer was "yes". I whish I'd recorded it.
But the confusion arises when people say Stat redundancy is 1 (or 1.5) weeks pay for every year, ignoring that it is capped and based on full years service too.
Mrs K gets her "package" tomorrow. It'll be interesting to see if they have the statutory notice correct because that will push her to 14 years service and increase her redundancy pay. Based on thier performance so far I bet they give her 30 days notice and have forgotten she was TUPE'd over so carry's more than the 5 years she's been with them
Don’t forget folks that “ Statuatory redundancy pay “ is just that.
I.e.. the minimum amount a company must pay to anyone made redundant.As far as I am aware there is no upper limit on “ enhanced payments “ that may be offered
Can I ask, are you retired? when did you retire?
Don't take this the wrong way, but your comments read like someone from my mum's generation who had great T&Cs, great pensions, great redundancy options etc. My guess is that most of the current companies who are trying to stave off bankruptcy in this utterly unprecedented world shitstorm aren't going to be as generous as they were to the previous generation.
Apologies in advance, but am interested to know..
Best of luck Kryton.
Last few redundancies I've been involved in have used Bradford formula for sick calculation.
TheGeneralist....
No problem with your questions..
I’ve been with my company 28 years, and close to but not at retirement... and the way retirement age keeps changing I may never get there 😉
I would agree a lot of companies won’t offer enhanced pay outs, but some will and talk above of 2 years cash in pocket shows it is possible even now.
TBH my son has really enjoyed the delivery work - he loves driving, so this is all fairly local, with some nice country lanes - he has a new shape Fabia 109PS Monto Carlo, so is a nice motor. Needs the job to pay for insurance.
I said look for more hours and something in a supermarket, or doing local deliveries. He was only doing weekends before lockdown, then had to ut it on hold as he has Type 1 and was told to be careful, but is back out doing upto 5 hours a night delivering.
He probably needs a re-think about career at the moment - he ideally wants to be on the Techy side of IT (building kit/networking etc), not in a call centre (which can't be fun from home, with no proper training or supervision).
I think redundancy is taxable above £30k but I doubt many will get anywhere near that. Enhanced redundancies and early retirement packages disappeared in the early noughties. I remember people leaving my Michelin plant with £30k and early retirement, for me over the years the pay in lieu has been a lot more than the actual redundancy payments.
Had the news via conference call on Monday that my whole branch is being made redundant by the end of October.
We knew it was coming so it wasn't a big shock but still not nice to hear it for real. We're due to start the process next week but a massive row has broken out between the company and the Union over what they want to pay us. We have a massively inflated redundancy package, over double the legal minimum, and the company is trying to base it all on furlough pay which is against the rules. Could get nasty! The difference between the company's figure and the Union's one for me is over £3k plus a month's wage so it's going to get nasty as there's over 1100 of us being cut loose. Will find out more on my meeting next week sometime but there's strong talk of those meetings being postponed until it's all sorted out as people are refusing to sign anything until the position is clarified.
Having been under redundancy consultation since March, I found out I’m staying for the moment. Good luck everybody.
Nice one Dan, of two people I know in your industry a Virgin Senior Steward and an EasyJet Pilot have both lost thier jobs.
Good luck reluctantjumper. Its a tough horrible process so try to keep you head out of the arguments, albeit you have to look after yourself.
In the news today is reported 650,000 job losses to date and its not done yet. Jeez. 🙁
Well the shit has really hit the fan with my redundancy!
The company are trying to pay us the furlough rate for our notice periods (mine's 12 weeks) and base any calculations on the furlough pay rate whereas the rules clearly state that both should be based on your 12 week average from the last 12 weeks you worked. The union are contesting it and calling for it all to be paused while the investigations are being done. If this pause happens and goes on for more than a fortnight then a lot of us will have our notice periods fall into November where there won't be any furlough pay for the company to fall back on.
The other issue rearing it's head is that the company is hinting that anyone with another job may forego their redundancy pay if it can be proved that they are no longer their main employer. I should be ok as I've kept my second job, that the company agreed to me taking in writing, to 2-3 days a week but others have been doing full-time work, again with the company's knowledge.
Something tells me this is going to get very messy.
Kryton - the 650,000 increase in unemployment is just the start; furlough is masking the true position and, as it unwinds, the grim reality will become apparent.
Deferred redundancies are now turning into reality.
Of course. One thing Furlough proved to a lot companies was who it was they could do without.
UK banks fear up to 800,000 firms employing 3 million could go bust in the next year if they cannot defer repayments on government-backed loans.
That's a scary comment.
Here's the article which follows it https://www.bbc.co.uk/news/technology-53424755