How to manage voluntary redundancies

Author: Sue Nickson

Summary

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• Consider the advantages and disadvantages of voluntary redundancy.
• Ensure that there is a genuine redundancy situation.
• Plan the voluntary redundancy programme and follow a workable timetable.
• Communicate the programme to the relevant employees in writing.
• Ensure that employees have the opportunity to find out what impact voluntary redundancy could have on their pension.
• Consider whether to extend the period for applications, or to implement the procedure for compulsory redundancies, if not enough applications for voluntary redundancy are received.
• Consider whether to ask the employees to sign a settlement agreement.
• Inform employees of the outcome of their application and hold individual meetings with those selected for voluntary redundancy.
• If there is no need for compulsory redundancies, inform the wider workforce of this as soon as possible.
• Consider early retirement as an alternative to voluntary redundancy.