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"Nearly everyone spends too much of their income and saves too little for retirement/emergencies, so losing your job unexpectedly can have devastating financial
by keithpeter 9y ago
"Nearly everyone spends too much of their income and saves too little for retirement/emergencies, so losing your job unexpectedly can have devastating financial consequences."
UK: in larger organisations (I mean big enough to have more than say 20 employees being made redundant) there is a consultation process that lasts a month or can last up to three months depending on the number of people being made redundant. There is a process that has to be kept to and there is a statutory minimum amount of redundancy pay [1] as well as payment in lieu of notice. Redundancy payments are tax free up to a limit
The result is in my experience less secrecy (consultation period) and some sort of financial safety net, at least a few months worth.
[1] https://www.gov.uk/redundant-your-rights/redundancy-pay https://www.gov.uk/redundant-your-rights/redundancy-pay
- grogenaut 9y agoHow shitty do the employees get during the consultation period?
- gaius 9y agoOften there is no requirement that they come in during this period, it's one form of "gardening leave".
- bboreham 9y agoConsultation happens before the decision is made* about who is leaving and who will still have a job. * officially made
- keithpeter 9y agoInterpersonal relationships can become 'interesting' during this period, but deliberate vandalism would be self-selection for redundancy and possible criminal action. Management become very 'correct' - to the extent of external 'consultants' sitting in on meetings and taking notes - and you can bet on morale being significantly impacted during and for up to a year after a long consultation. As pointed out below, the consultation period is before those being made redundant are (officially) selected. In large organisations - for extra fun - you have things called 'redundancy pools' based around areas of work or grades that all share a risk of redundancy but only (e.g.) 5 out of 25 will actually be made redundant. I should also point out that larger orgs often offer voluntary redundancy at enhanced terms within given 'pools' - unions where they exist will often bargain for enhanced terms. Not a pleasant time but does give people weeks/months to find something else and take what financial precautions they can - and perhaps decide that 'VR' (voluntary redundancy) is possibly attractive. Yes, you do lose good people sometimes.
- grogenaut 9y agoHow shitty do the employees get during the consultation period?