Q:

What is a voluntary redundancy letter?

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Quick Answer

A voluntary redundancy letter is a letter that an employee writes to his or her employer, requesting to voluntarily leave the company. The employee stands a chance to receive incentives for willingly quitting his or her job if the employer gives the option for voluntary redundancy.

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Full Answer

At some point, a company or organization may opt to restructure its operations or downsize. This usually calls for inevitable laying off of a number of employees to attain the said objectives. Normally, the company procedurally provides information regarding such an undertaking and the people to be affected. In most cases, employees who are seen to be unsuitable under the new system are laid off without being given a choice. This usually results in severe legal battles between the victims and their employer for compensation. Another way would companies meet their restructuring or downsizing goals is to retain the redundant position, the result of which would be unnecessary labor cost on the part of the organization under the new system. Additionally, the company may come up with a bonus package for its employees who may be willing to leave the company voluntarily. The employee then writes to the employer requesting to leave the organization on his or her own volition. If the employer grants such a request, the employee gets a bonus package for quitting his or her job in that manner.

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