This is helpful in the event of any potential future complaint about the process. For each full year the individual has worked for the organisation, they will be entitled to statutory redundancy pay as follows:. Use this information to calculate the maximum settlement amount you each employee is entitled to, and if you are able to outlay more as a financial incentive. In practical terms, voluntary redundancy usually involves offering a more generous settlement than the employee would otherwise be entitled to under compulsory redundancy.
This is to encourage employees to take up the offer and to allow the business to avoid the compulsory redundancy process. The initial settlement offer would usually be below the maximum amount, to allow for negotiation. Remember, the employee has the right to decline any offer for voluntary redundancy and withdraw from the voluntary redundancy process.
Employers are not obligated to accept offers from employees to take up voluntary redundancy. It is for the employer to agree to the resignation. This should be made clear to employees when offering voluntary redundancy.
Any selection from the pool of volunteers will have to follow a fair process, to avoid legal complaints. This should involve assessing applications based on criteria such as their role, skills, attendance and disciplinary record. This also helps to avoid situations where key employees volunteer who the employer would wish to retain. Again, record keeping will be critical here as evidence of decision making and reasoning.
If the organisation refuses applications for voluntary redundancy but then goes on to make compulsory redundancies, they should be prepared to defend their decision. Employees who are compulsorily made redundant may be able to claim that their dismissal was unfair since their role could have been saved had the voluntary redundancies been accepted. If any of your employees are close to retirement, you may suggest they take voluntary early retirement instead of voluntary redundancy.
If this is proposed, there should be a fair selection process. You should set out the proposed retirement package, including redundancy payments and notice periods. Working closely with our specialists in HR , we deliver comprehensive advice on the options open to you as an employer and provide practical support through the redundancy process, with particular experience in complex circumstances such as managing redundancy during maternity leave.
For help and advice with a specific issue, speak to our experts. The amount offered for voluntary redundancy will depend on a number of factors, including length of service, and will usually be negotiated. Employers and employees should ensure they are clear on the level of redundancy pay and any other entitlements that should form part of the exit package. Yes, the employer is not obligated to accept the offer to take voluntary redundancy.
Print Download. Print close X. Download close X. Email address. Select the statement you most agree with:. I do not understand the information. I cannot find the information I'm looking for. Your employer cannot just offer voluntary redundancy to age groups eligible for an early retirement package - this could be unlawful age discrimination.
However, an early retirement package for certain age groups could be one element of a voluntary redundancy offer open to all employees. Your training provider or the National Apprenticeship Service might be able to help you find another employer to help you complete your apprenticeship. Apprenticeships are different in Scotland , Wales and Northern Ireland. Check what you need to do. To help us improve GOV.
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