Voluntary Redundancies

John Mason

i am just looking for peoples options on this.

my head is wrecked

We have vol. Redundancies here and we have to decide by the 4th December and I would get about E25k which sounds a lot but if I didn’t get a job, it wouldn’t last long

Or I have the option of staying here until next December and getting statutory of about E6,000 but I would have had an extra years wages

I really don’t know what to do

Iago

Work out the difference between your take home pay and the €25k they're offering you now.

Then work out how much you're spending every month and see how many months grace the €25k gives you.

Now, just how employable do you think you are? Are you very likely / likely / unlikely to get a job significantly quicker than the number of months grace you have?

Does it give you an opportunity to get into an area that you've always wanted to work in but couldn't justify taking a lower starting salary for?

Does it give you an opportunity to go back and do a full-time course (3 or 6 months) that would make you more employable or allow you to move sectors?



If you know that you're going in 12 months anyway then there's no prospect for career advancement where you are so it all comes down to money. Bear in mind that if numbers are reduced stress and workload will likely go up so if there is anything you're unhappy about now it's going to be worse in 4 months time.

Say you were taking home €40k a year. That means you've got around 7 and a half months take home pay in that package. So even if you don't get another job you're only 4 months worse off by taking it.

but you've got 7 months to find a job with a similar salary / supplement a lower income in a job you really want / find yourself / improve your qualifications etc.

These are uncertain times, and that will always make these decisions harder, but the above is something I'd be looking to get down on paper to help me make a decision.

mood

You could start applying for jobs now. If it happens you get offered a job that starts after the date you would leave if you took voluntary redundancy then that might help you make a decision.

Ouchette

If you start applying for jobs now, you might also get a feel for how long it'll take to find a new job. If you're lucky enough to get loads of interview offers, you'll probably feel differently about the voluntary redundancy package than if you can't even find anything to apply for.

mood

Ouchette wrote: »

If you start applying for jobs now, you might also get a feel for how long it'll take to find a new job. If you're lucky enough to get loads of interview offers, you'll probably feel differently about the voluntary redundancy package than if you can't even find anything to apply for.

Exactly.

Newaglish

Well this is the purely mathematical approach:

Assuming you will definitely be let go next December:

Voluntary Redundancy
25,000 redundancy
10,608 dole (approx dole between now and next december)
35,608 total

Statutory Redundancy
6,000 redundancy
29,608 wages
35,608 total

The figure I took for wages is a balancing figure. If you earn less than 29,608 (NET), it makes sense to take redundancy now. If you earn more, it makes sense to keep your job.

Also if there is any possibility of getting a job between now and December 2010, it enchances the attractiveness of the voluntary redundancy option.

You also need to consider the money saved by not working (commuting, dry cleaning, lunches etc.) and the effect of being unemployed (free time, leisure but also boredom)

Note, this only works if you will definitely be made redundant next December. It's also a little basic as I haven't taxed your redundancy payment (I would need more detailed information to do so).

mood

Newaglish wrote: »

You also need to consider the money saved by not working (commuting, dry cleaning, lunches etc.) and the effect of being unemployed (free time, leisure but also boredom)

The negative effects of unemployment can be a lot more serious than boredom. It can be very difficult for the OP to get back into the work place. He/she may need to up skill to get a job. The recession may last a lot longer than we think. It can lead to depression.

It is not just about the money.

John Mason

thanks for all the advice

i have been applying for jobs for the last 2 weeks, havent heard a thing back yet. The OH was left go suddenly 4 weeks ago and he hasnt had an interview just either.

i have worked out my figures and i could survive for about 5 months on the voluntary.

the recently qualified as an Accounting Techincan was looking to start ACCA in January, this is on hold now.


this time last year newly qualified AT's were earning roughly E30-35,000 which is less then i earn now but i could have managed. now they are advertising for AT's with 3 - 5 years exp. for E24-25,000 there is no way i could manage that.

i have no credit card debt but a year left on a home improvement loan.

i am 70% waivering towards sticking it out until December 2010 and hoping the job market is in a better situation.

It is 90% likely that my job will be gone by next year, its government funded.

78 people were made redundanct last Janaury and very few have jobs.

another 10 were let go 4 weeks ago and not one has managed to even get an interview.

and they are looking for another 20-30 this time around.

we have been told there will definately not be a package next year only statutory.

If himself had a job, it would be an easier decision but ............