Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employment lawRedundancy

Legal Q&A: Voluntary redundancy

by Karen Waddell 24 Jan 2011
by Karen Waddell 24 Jan 2011

Large scale redundancy exercises bring challenges of many kinds, but employers often find that a request for volunteers is welcomed by the workforce and less damaging to the employer’s reputation than might otherwise be the case, particularly if the desired result can be achieved through agreement.

The Government’s Comprehensive Spending Review in October 2010 forecast significant budget cuts, the knock-on effect being the loss of more than half a million jobs in the next five years. Given this environment, employers need to be aware of the potential pitfalls of the voluntary redundancy process and know how to take steps to avoid them.

Q When is a volunteer not a volunteer?

Sometimes the possibility of voluntary redundancy may be raised by an employee, or volunteers may be sought by an employer, long before any formal redundancy process takes place, and before the employer decides that it needs to dismiss particular categories or numbers of staff. An application for voluntary redundancy that is accepted in this context could be a resignation on the part of the employee or a true mutual agreement to terminate the contract; in other words, not a dismissal.

On the other hand, if volunteers are requested as part of a redundancy process, those who agree to go are likely to be treated in law as dismissals. As a result, statutory obligations are relevant, for example relating to consultation, statutory redundancy payments and notice periods, if applicable.

Voluntary redundancy: XpertHR resources

How to manage voluntary redundancies

Voluntary redundancy policy

Letter confirming that redundancies will be necessary and inviting applications for voluntary redundancy

Q What steps should employers include in a voluntary redundancy process?

  • Employers should make it clear when inviting volunteers that they reserve the right not to accept all applications. If the employer is obliged to accept applications, voluntary redundancy can result in the significant loss of skills and experience.
  • Don’t ignore consultation. Collective consultation is required when 20 or more employees at one workplace are at risk of being made redundant within 90 days. Volunteers will usually count in the numbers of proposed dismissals. Individual consultation must always be carried out with affected employees, even where the decision appears obvious or when collective consultation is also taking place. Volunteering can usually be built into this part of the process.
  • Those whose applications for release are not agreed should be told why and reassured that they are being retained for positive reasons.
  • The employer should usually hold a meeting with volunteers to tie up loose ends and to discuss whether or not the employee will be required to work his or her notice period.

What problems can arise with voluntary redundancy?

  • Some employees get cold feet after volunteering – employers should ensure that all communications set out clear dates for agreement and departure so that the point at which the redundancy process becomes finalised is certain.
  • There is a risk of discrimination allegations by selected or non-selected employees. Employers should ensure that clear records are kept of all consultations and that any decisions are objectively justifiable.
  • An employee who is selected for redundancy, but who could have been saved if the employer had accepted a volunteer, could challenge his or her dismissal. Employers should think carefully about the selection criteria for volunteers if conducting the two stages of the process together.
  • There is a risk of claims for protective awards. Employers should ensure that they count the volunteers in the number of proposed dismissals and meet collective consultation requirements.
  • Voluntary redundancy exercises may be less successful where an employer does not have the ability to offer enhanced settlement terms.
  • Where large numbers of job losses are involved, it is unusual to be able to complete a whole exercise by securing volunteers.

By following a carefully considered process, many of these issues can be avoided. However, if problems do arise, appropriate advice should be sought from a trusted legal advisor on how best to proceed.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Karen Waddell, Associate, and Jenna McCosh, Trainee Solicitor, Brodies LLP

This article was originally published on 24 January 2011. It was updated on 23 October 2015 by Ashok Kanani, employment law editor.

Karen Waddell

previous post
M&S and Kineo to serve up free coffee and award-winning e-learning at Learning Technologies
next post
Recruitment a top priority for private sector

You may also like

Company director wins £15k after being told to...

4 Jul 2025

Microsoft to cut 9,000 jobs globally as role...

3 Jul 2025

How can HR prepare for changes to the...

3 Jul 2025

Top 10 HR questions June 2025: Redundancy consultation

2 Jul 2025

Government publishes ‘roadmap’ for Employment Rights Bill

2 Jul 2025

Employers’ duty of care: keeping workers safe in...

27 Jun 2025

Bioethanol plant closure could lead to 4,000 job...

26 Jun 2025

When will the Employment Rights Bill become law?

26 Jun 2025

Graduate jobs this summer ‘will be toughest since...

25 Jun 2025

Seven ways to prepare now for the Employment...

20 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+