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Voluntary Redundancy or Compulsory Redundancy is regrettably more a way of life today than it was even as lately as 25 years ago. When you joined an organisation you are expected to be there throughout your career, probably starting at the bottom and working your way up when you had learnt the trade.

These days the job market is a changing market whereby companies consolidate their positions by making redundancies only to employ staff again once the economy picks up. You may look at this in two ways, either a disaster or an opportunity. Many however, think of this as being a disaster and an insult on their character but this is not the case. It is the job that has been made redundant not you, but, being able to distance yourself could be challenging. What's more is that it can be frustrating when you see your work re-advertised nine months down the line as the firm is beginning to grow again often because of its survival through redundancies.

Transparency is essential when selections are made for redundancy. In other words the selection process must be fair and without discrimination. Decisions will be made on your eligibility considering such things as your disciplinary record, your qualification, knowledge and capability to name a few.

If you are provided voluntary redundancy the redundancy package you might be offered can be an enhanced redundancy payment, and possibly the extended use of a company car or health benefits. These initial redundancy deals are usually probably the most generous a company will make, as consequent rounds of redundancies signifies the offers are less liberal.

You might discover that if your redundancy is mandatory that you will be asked to leave the premises straight away. It may seem that this is embarrassing but there have been instances when a few people have got angry and decided to cause lots of problems by implementing computer viruses, damaging machinery or stealing therefore by asking you to leave this is seen as a way of removing the possibility of this happening. You will discover that the redundancy payment will be fixed at this point.

One of many questions frequently raised is whether redundancy pay is taxable. Your redundancy payment is not taxed up to Thirty thousand pounds. You will be eligible to redundancy payment if you have worked continuously for the company for a minimum of two years irrespective of how many hours you work. Your wages and any bonus which you have accrued in those times will be taxable.

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