Voluntary redundancy

Volunteering does not decide the application

An employer can invite employees in the affected area to volunteer for redundancy. Applying expresses interest; it does not create an automatic right to leave or require the employer to accept. The business may need to retain particular skills, but the criteria for accepting or refusing applications should be clear and consistent.

The GOV.UK non-compulsory-redundancy guidance recommends a fair and transparent selection process. Avoid informal private approaches that place pressure on older, disabled, pregnant or otherwise protected workers.

Keep the redundancy reason intact

Voluntary redundancy is still an employer-led redundancy dismissal when the application is accepted. Confirm the affected work, consultation, leaving date, notice, statutory entitlement and any enhanced payment. Do not disguise a resignation, performance concern or agreed exit as redundancy to obtain a preferred tax or process result.

An enhanced offer may be useful, but state whether it is conditional on a settlement agreement and independent advice. Keep the redundancy payment separate from notice, holiday and other final pay.

Plan for declined and excess volunteers

Tell employees the application window, information they need, selection method, expected response date and whether withdrawal is possible before acceptance. If there are too many volunteers, apply the published method. If there are too few, continue a fair compulsory-selection process rather than inventing new criteria for the remaining people.

Write individually to each applicant with the decision. For accepted volunteers, confirm the termination details and appeal route. For declined volunteers, explain the decision without disclosing another employee's private information and make clear how the wider redundancy consultation continues.