Voluntary Redundancy Scheme and Application Form
Scheme terms and an application form for voluntary redundancy, including the employer's right to decline and how business-critical skills are protected.
Scheme terms and an application form for voluntary redundancy, including the employer's right to decline and how business-critical skills are protected.
When to use it
Where you want to reduce compulsory redundancies and can control which applications you accept.
Running a voluntary redundancy scheme without losing the wrong people
Voluntary redundancy can reduce compulsory dismissals, shorten a difficult process and give people agency at a moment when they have very little. It can also strip out exactly the capability you need if the scheme is opened without controls.
Designing the scheme
The pack covers the scope of the invitation, the terms on offer, the application window, and — critically — the employer''s right to decline applications. That right must be stated clearly and up front. Employees should understand that applying does not guarantee acceptance, and that the business will consider skills, knowledge and future capability when deciding.
Deciding who to release
Apply a documented set of considerations rather than first come, first served: criticality of the role, transferability of the knowledge, the cost of replacing it, and the effect on the team that remains. Record the reasoning for each decision, including refusals, because refusals are the ones that generate complaints.
Where it fits legally
Voluntary redundancies still count towards collective consultation thresholds where the employer dismisses. Check the position using the Redundancy Compliance Decision Tree before you open the scheme, and reflect the window in the Collective Consultation Timetable.
Terms, tax and settlement
If enhanced terms are offered, model them in the Redundancy Cost Model first. Where a settlement agreement is used, the Settlement Agreement Briefing Note explains the position to employees in plain language.
Support on the way out
People who leave voluntarily still need a plan. Career transition support is as relevant for a volunteer as for someone selected, and offering it consistently avoids a two-tier feel. See our guides for how to structure the offer.
