Am I Eligible for Voluntary Redundancy?

Voluntary redundancies occur when a company is facing financial difficulty or has too many staff for the job that needs doing.

Employers often prefer to offer voluntary redundancy rather than compulsory because it is better for work morale if employees feel like they are not being made to take redundancy, but are being given the option.

Voluntary redundancy can be expensive for employees though, so even though they have offered it to everyone they might still decide to pick and choose who they allow to take it.

Your answers to the below questions should give you a good idea as to whether your employer is likely to choose you for redundancy.

1) Has Your Company Offered Voluntary Redundancy?

• A) Yes, we have been asked to put our names forward
• B) There are to be redundancies but voluntary redundancies have yet to be mentioned
• C) No, but I know the company is in financial difficulty

2) Are You a Long-term Employee?

• A) Yes, I have been at the company for over ten years
• B) I have worked there for around five years
• C) No, I am new

3) How Old Are You?

• A) Over sixty
• B) Around 50
• C) Under 40

4) How Many Redundancies Need to be Made?

• A) Around 30 -40% of workforce
• B) Around 10-20% of workforce
• C) Under 10% of workforce

5) How Specialist is Your Role?

• A) There are a number of people that do my job
• B) A few of us do the same job
• C) I am the only one that does my job

Your Answers

Mostly A –You Stand a Good Chance

On paper you sound like you are the ideal candidate for voluntary redundancy. If you have been with the company a long time it will cost your employer more to offer you voluntary redundancy because they will have to give you a large payout. They may however prefer to offer you voluntary redundancy if you are thinking about winding down or retiring.

Offering voluntary redundancy to those that are looking to retire boosts the morale of the other workers and makes them feel more secure about their own role. If there is more than one person who can do your job you will be less of a necessity to your employer as they can rely on one of your colleagues to fill your role.

If they are looking to offload around 30-40% of the workforce through voluntary redundancy this will increase your chances of your application being accepted.

Mostly B - You Should Apply

You sound like you could be eligible for voluntary redundancy if this is what your company has planned. Not all employers will offer voluntary redundancy, even if there are redundancies on the cards. It is not a good idea to put yourself forward for voluntary redundancy until this has been officially been requested for by your employer.

If there are a couple of you that do the same job it will depend on how many people apply for voluntary redundancy, it may be that your employer has to choose between you all.

In this instance if the company wants to show employee loyalty and create a good feeling amongst the remaining workforce they will normally opt for the older candidates and those that have been with the company the longest. If you are not planning on retiring though you should be careful if you volunteer for redundancy late in life, as your chances of finding employment elsewhere could be reduced.

Mostly C – Your Chances Are Slim

Unfortunately it sounds like you are unlikely to be offered voluntary redundancy. Your colleagues are likely to be offered voluntary redundancy before you because they will have been there longer. If you are the only one that does your job your employer is likely to want to keep you. If you are new to the company your employer will be unlikely to offer you a large payout because you have not been with the company for a long time. Larger corporate companies will not always follow these guidelines and if they are keen to shed a lot of staff they will choose those where their roles double up.

It will ultimately be your employer that decides who they are willing to offer voluntary redundancy to. If your job is one of a kind it is less likely they will want to part with your skills, unless off course they are not needed anymore. If you apply for voluntary redundancy and are unsuccessful it may lead to an uncomfortable working atmosphere as they know you want to leave.

But for many voluntary redundancy offers a get out of jail free card and a hefty lump sum, for those who can find employment elsewhere.