Redundancy can take several forms, but is almost always used to keep a company afloat while it goes through a period of structural change, technological advancement or external forces making the company less profitable.
The need for redundancy often comes about through no fault of the employees involved. Litigation and tribunals can be avoided by offering the affected staff severance packages that reflect this fact. It can improve goodwill and give them a chance to find their feet and continue paying their bills while they seek alternative employment. Many employees will be relatively happy to move on with such a package and retain the opportunity to have the ex-employer as a valuable reference.
Another means of improving goodwill and reduce the chances of ill-feeling is to make redundancies non-compulsory. This is usually carried out at the early stages of a round of redundancies, albeit with the option of elevating to compulsory redundancy should too few employees apply.
Non-compulsory (or voluntary) redundancies can be an effective way of giving those who don’t feel committed to the company a chance to leave on good terms, or for those approaching retirement to start early.
Peninsula Business Services can provide advice and assistance on any aspect of non-compulsory redundancy. Contact us online today, call 0800 0282 420, or use our callback form to arrange for us to get in touch at a time that is convenient for you.