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Voluntary Redundancy

Non-compulsory selection could be by voluntary redundancy.
This is a more expensive method for the employer since long serving employees may be attracted to higher redundancy settlements. It is not uncommon for employers to offer higher redundancy payments as an incentive for staff to leave.

However, this method may result in a disparity in the remaining experience and skills and affect the productivity of the company. Indeed, many redundancy agreements approve the employers' right to decide on who should be allowed voluntary redundancy and who should not. So if an employee applies for voluntary redundancy it is not certain that it will be allowed.

The employee should also consider whether a failed application would affect future career prospects.

Another method for non-compulsory selection could be by early retirement, again more expensive, but on the positive side it has less serious effects on the morale of the workforce.

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