As mentioned, employers will do everything they can to avoid making people redundant. If you are struggling to select specific employees to make redundant, you can elect to carry out a period of voluntary redundancy. eur-lex.europa.eu Aufgrund des Status der lebenslangen Unkündbarkeit, den die Bediensteten der OTE genössen, könne die OTE nicht einseitig Personal entlassen, sondern habe auf Angebote eines vorzeitigen Ruhestandes zurückgreifen müssen. Requests for voluntary redundancy are ordinarily made at the start of the redundancy process but an Employer is not under any obligation to accept any application from an employee. After your employer has identified the pool of employees who might be made redundant (or any unique posts where there will not be a pool of employees) , your employer should meet with you and any of your colleagues also at risk and explain why redundancies may be needed, how many redundancies may be affected, how redundancies may be avoided and offer the chance to accept voluntary redundancy. https://www.perkbox.com/.../the-ultimate-guide-to-voluntary-redundancy Under Dutch law, a permanent employee’s contract can only be terminated with prior permission from the court/UWV. When offering voluntary redundancy, it will be key to remind employees that anyone who submits an application will not automatically be made redundant and, instead, it will be for the employer to either accept or decline the application. Voluntary redundancy could change your life – just make sure you’re changing it for the better. This should take place with a union representative or an elected employee if more than … When a voluntary severance package is offered, employees are expected to sign a voluntary severance agreement. https://legalservice.which.co.uk/insight/voluntary-redundancy-your-rights 2. An employer must justify their request to the court by using one of the 9 legal grounds for dismissal. Who can be offered voluntary redundancy? Employers do not have to accept applications for redundancy and can reject the application if, for example, the employee is considered too good to lose. Understand what you are being offered. Your employer will decide who they want to let go and tell you what selection criteria they are going to use. Employers offering voluntary redundancy want to achieve a certain headcount loss so they do not have to resort to … They offered me a deal to delay the redundancy while I worked on a project under a fixed term contract. Why Should An Employee Consider Voluntary Redundancy? Selection criteria should be as objectively measurable as possible and should be communicated clearly to affected employees, with a chance to comment on the criteria. They might ask employees if they want to switch to a different job role or reduce their working hours. The benefit of offering voluntary redundancy is that it is more likely to create a positive work culture. With this approach, younger workers can get a chance to work because the older people have retired early. In an age where employers are becoming increasingly cost-focussed in the face of economic stagnation and narrowing profit margins, employees are often made redundant in an attempt to save on wage costs. Employers decide if they want to offer a redundancy scheme. This is called ‘suitable alternative employment’. This protects employers, to a large extent, from claims of unfair dismissal as employment tribunals are unlikely to accept that employees were dismissed if they signed the agreement. The short answer to this is ‘no, not usually’. Once notice of redundancy has been issued to an employee, it is legally binding and cannot be unilaterally withdrawn by the employer, even if the employee is still working out their notice period. Your employees’ voluntary redundancy rights. If your employment agreement or policies includes voluntary redundancy, then make sure this is offered as appropriate. It may, however, be possible to do so under the terms of the voluntary redundancy scheme up to a certain cut off date if your employer has not yet formally accepted your application, so it would be worth checking this. Seeking volunteers. It can be a financial incentive offered by an employer to employees where a business is downsizing or restructuring. Consultation. It’s important to understand employment law and voluntary redundancy. It starts with a letter explaining why and asking for volunteers. If an employer fails to consult and consider a selection pool correctly, the dismissals will be legally unfair. Usually, if there are insufficient numbers,the employer willdecide who to make redundant on a compulsory redundancy basis. On the other hand, if volunteers are requested as part of a redundancy process, those who agree to go are likely to be treated in law as dismissals. Whether you have been offered voluntary departure or a settlement agreement, or you have been forced into redundancy in 2021, here’s what you need to know. Moving forward, you will sign on the resignation letter that will be provided to you. Search the job market If you’re keen to move to a new job, change career, retrain or even start your own business, taking voluntary redundancy could be a good first step. In order to encourage employees, organisations will incentivise voluntary redundancy financially with severance packages. If you do apply, you do not have to accept the offer to go. Offer Voluntary Redundancy First. Due to the life tenure status of OTE employees, OTE could not unilaterally dismiss staff but had to have recourse to voluntary redundancy offers. A voluntary severance / voluntary separation does not constitute a redundancy. Redundancy occurs where you lose your job due to circumstances such as the closure of the business or a reduction in the number of staff. In many redundancy situations, the employer may identify a range of selection pools. Put your request to leave early to your employer in writing saying when you want to leave. An application for voluntary redundancy that is accepted in this context could be a resignation on the part of the employee or a true mutual agreement to terminate the contract; in other words, not a dismissal. Otherwise you are likely to be made compulsory redundant on statutory terms, or dismissed under capability. After the careful planning stage, offering a voluntary redundancy package and seeking volunteers may avoid compulsory redundancies. Even if there is no detailed process, there may be some guidance and employers must use this. These will typically be higher packages offered for forced redundancies. No Fixed Term contract was ever issued, the project was delayed and split into two separate projects which I have been working on. If you leave early without your employer’s permission, you could lose some or all of your redundancy pay. Employers must follow certain processes when an employee is made redundant. Voluntary redundancy is when an employer asks an employee to agree to terminate their contract, in return for a financial incentive. You do not have to apply for voluntary redundancy. Employees who have provided more than ten years of service, or are seniors, will usually be the first to be offered voluntary redundancy. You should be very clear if your employer is making you statutorily redundant, offering voluntary redundancy or offering voluntary severance / voluntary separation. If one of your staff decides to volunteer for redundancy, they can get statutory redundancy pay as long as they have at least two years' continuous service with you. They don’t have to. Once your employer has accepted your application for voluntary redundancy, it is not usually possible to change your mind without your employer’s consent. If you’re offered a job and your new employer wants you to start before your redundancy notice ends, speak to your employer and see if you can leave early without losing your redundancy pay. Do I have to accept a redundancy if the redeployment options offered are not suitable? I think you either need to get back to work in the office on Monday - or thereabouts - or accept the exit package- if it’s still available. My employer accepted my voluntary redundancy in 2015 with an effective leaving date of 31 March 2016. A redundancy may be unfair if you do not consult with the affected employees (on either an individual or a collective basis). Redundancy process. After careful consideration, the company has decided to accept your request. If redundancy is the only option, employers may ask staff if they want to volunteer for redundancy … This allows employees to choose redundancy before you conduct a potential selection process, often encouraged by a financial incentive. During the early stages of restructuring, it is worth exploring whether there are any employees at the company who would take voluntary redundancy. Voluntary redundancy normally offers a greater financial payment to employees; this approach is to incentivise staff to apply for voluntary redundancy. Employees who volunteer and are accepted for redundancy are then in the same legal position as employees selected compulsorily, for example in relation to their right to receive a statutory redundancy payment. The advantage of this is that it may have a less demoralising impact on the workforce, as the affected employees have some degree of control over their dismissal. If you require any employment advice or representation, whether you are an employer or employee, feel free to contact Alan Davidson for a consultation: 01756 692 869. Not all employees … As if you don’t, you may breach some of the rights of your workforce. The Redundancy Payments Acts 1967–2014 provide a minimum entitlement to a redundancy payment for employees who have a set period of service with the employer. The difference between voluntary and involuntary redundancy is that voluntary redundancy VR is typically offered to a specific age group and experience level, for example, employees that are between 40 to 50 years who have been with the company for at least 10 years. Before your employer makes you redundant they might offer you another job in the organisation. Just as with compulsory redundancy, your employer has to consult with you about the reasons for voluntary redundancy. Although there is no obligation to accept the terms offered by your company, you will usually receive more money than you would in a traditional redundancy package. Tell your employer in writing if you decide to accept the alternative job. Voluntary redundancy gives an employee control over how they will leave the business. To be honest, I think the company has been generous offering you voluntary redundancy/exit package. Voluntary redundancy is sometimes offered to employees, encouraging them to nominate themselves to leave. For some people who might be close to retiring age, or who are able to get another job quite quickly this might be a good move for them. If the employer subsequently wishes to withdraw the notice because of a change in business or economic circumstances, the express consent of the employee is needed. In limited circumstances it is possible for employment to be terminated by mutual agreement between employer and employee, which would … Ask for a new contract, new job description and any changes to your terms and conditions, for example your pay. The element of choice takes some pressure off the business’ shoulders. Choosing whose application is accepted. Although employees who do accept a voluntary redundancy offer are technically not resigning, it’s usually preferred over a compulsory redundancy. Your redundancy could be an unfair dismissal if your employer has suitable alternative employment and they do not offer it to you. Since voluntary redundancy is entirely different from compulsory redundancy, the compensation for voluntary redundancy is higher than what employees would normally receive from a usual redundancy package. Voluntary redundancy generally describes situations where an employer decides it needs to make redundancies and asks for volunteers. Do Employers Always Have To Pay Severance Pay. Dear [Employee Name], We received your request to avail the voluntary redundancy program at [Company Name]. You can integrate the voluntary redundancy as part of the consultation process under the relevant award. Dismissal law.

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