Voluntary redundancy

Where jobs are to disappear, an employer may ask for employees to volunteer for redundancy. Even if you take voluntary redundancy, it will still count as a dismissal and your employer must still follow the proper procedures. You won't lose any right you may have to redundancy pay.

If you volunteer for redundancy, it is up to your employer whether they actually select you.
Get expert advice about whether it's worth choosing.

Without knowing the exact details of your financial situation, including that of your total household, it is hard to be able to say what you would or wouldn’t get.

It is worth remembering that in the UK, the Job Seekers Allowance, and many other benefits, are means tested, so if you have a great stash of savings (in October 2011, the threshold is over £16,000), you are unlikely to be able to claim anything other than benefits such as child tax credits.


It is common for voluntary redundancy to include a lump sum payment and then a number of months fully paid. While you can sign on as unemployed straight away, if you wish, you are unlikely to be able to claim JSA or other benefits, such as housing allowance, until the period of time that you have effectively been paid for is over (e.g. 2 months) regardless of how much of the money you actually spent, or what your salary was.