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Voluntary Redundancy or Compulsory Redundancy is regrettably more a way of life these days than it had been as lately as 25 years ago. When you joined a firm you are expected to be there throughout your career, probably beginning 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 just to recruit staff again once the economy picks up. You can look at this in two ways, either a disaster or an opportunity. Many however, think of this as being a disaster and also an insult on their character but this is not the case. It is a task which has been made redundant not you, but, being able to distance yourself could be difficult. What's more is that it can be frustrating when you see your work re-advertised nine months later as the firm is starting to develop again often because of its survival through redundancies.

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

If you are provided voluntary redundancy the redundancy package you may 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 generally one of the most generous a company will make, as consequent rounds of redundancies means the offers are less generous.

You may discover that if your redundancy is compulsory that you will be asked to leave the premises straight away. It may seem that this is embarrassing but there have been times when a few people have got upset and chose to cause many problems by implementing computer viruses, damaging machinery or stealing and so 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 time.

One of several questions frequently raised is whether or not redundancy pay is taxed. Your redundancy payment is not taxable 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 the number of hours you work. Your wages and any bonus which you have accrued during this period are going to be taxable.

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