My job is at risk but I already want to leave - should I take voluntary redundancy or wait?

I’ve heard rumours at work that some of my team may be offered voluntary redundancy. 

I’m unsure whether my role will be cut, but I’m keen to leave anyway. Is it better to take voluntary redundancy or wait?

Glenn Hayes, employment partner at law firm Hill Dickinson, says: It is a calculated gamble, but offering to take voluntary redundancy can work well for both sides. 

It may save a colleague’s role, and, for an employer facing a tough financial situation, a willing volunteer can make the process far easier.

The risk is that if your employer knows you would like to leave anyway, it may decide not to make you redundant and simply wait for you to resign, saving itself the redundancy payment.

Waiting to be made redundant removes that risk, but it brings other risks. Your role may not be in scope at all, or it may be, but you might not be selected following the selection process.

Many employees wait until they’re placed at risk before saying they would consider voluntary redundancy, but the employer is under no obligation to accept.

Waiting to be made redundant comes with its own risks, emplyoment experts warn

On balance, approaching your employer in the right way is usually the best option. Acknowledge the difficult position they’re in and offer to be considered for voluntary redundancy to ease the process and help protect other roles.

If you intend to join a competitor, clearly they will be less willing to let you go. You do not have to inform them of your plan.

Imogen Finnegan, senior consultant at Bellevue Law, says: Voluntary redundancy can be an attractive option, particularly if you were already thinking about making a move. 

However, the decision is often framed in the wrong way: many employees think they are choosing between voluntary redundancy and compulsory redundancy when, in reality, they are usually choosing between one uncertainty and another.

Voluntary redundancy packages are often enhanced to encourage employees to leave, but they are not necessarily more generous than the terms available if you are made compulsorily redundant. 

Much depends on your employer's redundancy policy and the details of any scheme being proposed. The challenge is that, at this stage, nobody knows exactly how the restructuring will unfold.

If you volunteer, your application may not be accepted. If you wait, your role may be selected for redundancy, or it may survive entirely. In those circumstances, it is important to gather as much information as possible before making any decisions. 

Look carefully at the redundancy payment, notice pay, any additional incentive being offered and the proposed leaving date. 

Once you have those details, you can compare the package against the alternatives available to you. 

For someone already considering a move, the key question is whether the package on offer is attractive enough to make leaving now worthwhile. 

Many employees assume that waiting will necessarily lead to a better outcome, but that is not always the case. If your role is later selected for compulsory redundancy, the package could be the same, better or worse.

What if your request for voluntary redundancy is declined? 

It is also worth considering what happens if your role survives the restructuring or your application for voluntary redundancy is declined. 

If leaving remains your preferred option, think about how you would proceed in those circumstances. 

One final practical point: if you have mortgage payment protection or income protection insurance, check the policy carefully, as voluntary redundancy may affect your eligibility for a payout.

The most sensible approach is usually to keep your options open until you have enough information to make an informed choice. 

An attractive redundancy package can turn a departure you were already contemplating into a financially supported one. The key is to understand exactly what is on offer before deciding whether now is the right time to leave. 

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