What is a voluntary redundancy?
Voluntary redundancy is a term used to describe compromise agreements between employers and employees when the organization must reduce or eliminate parts of their workforce. When the role of employees becomes redundant, it is no longer critical or useful for the operation of the organization. In situations where laws or social expectations prevent the organization's ability to end unnecessary employees without a fair cause or proper procedure, voluntary redundancy offers an alternative. The employer and the employee will achieve an agreement according to voluntary redundancy, when the employee resigns from his own free will from position in exchange for financial incentive or settlement. Therefore, the use of voluntary programs for redundancies and severity for excess employees differ. Usually, the more restrictive laws on the employment of jurisdiction in terms of the terminal of this region are more popular voluntary programs for redundancy. In European countries like Germany and the United Kingdom, they make it difficultexternal requirements for labor law in terms of elimination of positions. As an alternative to extensive announcements, consultations with employees' representatives and other predecessors for layoffs, many organizations will instead decide on private agreements with employees who voluntarily leave the company.
Most states in the US have job laws "at will", which means that both the employer and the employee retain the right to terminate the employment agreement for any reason. These arrangements allow us to reduce the size, restructuring or completely eliminate employees' positions as needed to meet organizational goals. Few American companies or human resources management companies offer voluntary programs for redundancies or other redundant endings. Only in cases where trade unions, individual employment contracts or policies published in the manuals forSpecifically, urban people reduce the conditions under which employees are subject to the company in the US, offer voluntary redundancy programs.
In addition to the statutory requirements that cause voluntary programs to be popular for redundancy, there is a social responsibility for employees that need to be considered in the restructuring of companies. In the face of the possibility of layoffs, employees near the age of retirement or promising career prospects are often willing to voluntarily resign to help save jobs. With regard to such employees and thinking, many organizations offer voluntary redundancy agreements in an effort to minimize the social impact and perception of public perception of restructuring. Socically responsible employers who decide to offer employees voluntary agreements on redundancy can often alleviate a negative response to the release of retraining, financial incentives and relocation to the severance pay.