Voluntary redundancy
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Voluntary redundancy (VR) is a financial incentive offered by an organisation to encourage employees to voluntarily resign,[1] typically in downsizing or restructuring situations. The purpose is to avoid compulsory redundancies or layoffs.
Reasons
A voluntary redundancy programme is not always driven by short term revenue goals. It can also be motivated by the strategic choice to change the age structure within the company. According to research,[citation needed] people who accept voluntary redundancy may at times return to the company after changes in the company's prospects, strategic vision, or economic climate and, in doing so, may bring new ideas.
Examples
Delta Air Lines, in the aftermath of its bankruptcy filing, offered a programme that included limited flight benefits for a set period after voluntary resignation. In light of rising fuel prices, it turned back to a VR programme. The particulars of that severance package are unknown.[2]
See also
- Compromise agreement
- Golden boot compensation
- Golden parachute
- Layoff
- Restructuring
- Severance package
References
- ^ "Voluntary redundancy: What are my rights? | reed.co.uk". reed.co.uk. 2018-05-23. Retrieved 2018-11-22.
- ^ Delta to cut jobs as costs surge,BBC News, 18 March 2008