I am up for retirement in 12 months (if I can afford to). My workplace just got restructured and a bunch of people got redundancy packages. I was the only one who just got moved to another area. Annoyed.
I was luckier. It was well known that was planning to retire and I agreed to do an unloved and limited duration transition job for about 18 months. With nearly 40 years payout was nice.
This. I plan to retire at 60 if I can, but if there is a redundancy package close by you can bet I will put in minimum effort until 65 or even 70 if I have to, to make sure they pat up
I question your assumption that I will be doing anything that resembles what a reasonable person calls "working" in those 5-10 years lol. One of my directors who is in this situation, works almost exclusively from home and more often than not on the odd occasion I call him, I can hear him feeding his chickens.
Don’t do this man, I knew a great guy, everyday he said for 5 years he was gonna only leave when they pay him out, he finally got his payout only to drop dead 3 weeks after finally getting that long awaited package, he never even needed it he was on a old government pension scheme where he was getting 40% of his current pay extra since turning 55 and would get 70% once he stopped working for the rest of his life which still increase every year indexed to cpi
I know a guy who also did this. Umm’d and ahh’d about retiring for several years, even though he had a lot of money. Was always convinced redundancies which never came might be around the corner. We worked in heavy industry so the work was physically hard but well paid and he’d been there 30 odd years, had received an inheritance etc.
Finally pulled the pin to go and died within the month. He personally never saw a single pension payment or holiday he’d booked.
I’m now of the opinion that dilly dallying around retiring is incredible dumb
Same happened to my mates dad. Career teacher, pay out at the end with DB Super. On year two of retirement he had a massive coronary and died. Thankfully his wife was able to receive a 75% pension off what he was to receive for the rest of his life.
You should seek advice from an employment lawyer. I had a friend who had worked for a company a couple of decades. They made his entire team redundant except him, obviously because it was going to be expensive. It took some negotiation, but they eventually made him redundant as they got found for taking the piss.
I guess the thing is in my case that while the free money would have been nice I enjoy the work and the new, slightly different role is more satisfying than the previous one. They didn't make the whole team redundant, just some.
This was my mum! She did 3 days a week (instead of 5) to run down her long service a bit cos she had a feeling she was going to get a redundancy and was planning to retire anyway. A year in, there were voluntary redundancies going around and she took one!
I went to 4 days a week for the last 3 or 4 years, but via lower pay not leave.
My redundancy was not really part of a round though, I worked in a niche role that was being reduced and the redundancies were not fully voluntary... younger staff were redeployed.
When you say “the public service”, which one do you mean?
At least in the federal public service, they’ve been made extremely rare - you can literally google posts and questions about it and there’s basically nothing after 2013-beginning 2014.
Company I work for recently did a round of redundancies. Had maybe 10 people leave straight after they announced the redundancies were complete. They'd all been hoping they would get one.
literally just happend to half of my company. Got bought out, part of the terms were they get made redundant and start from square 1 at the new company.
Is risky long term but short term its a sick payout and time to look for something else without taking a financial hit.
I once got offered a job at 2:30pm on a friday, and at 2:35pm I was made redundant from my existing job. After the HR meeting I called my (about to be new) boss to let him know what went down (he was ex- the same employer lol). We laughed and laughed.
Just take it and play the game. You should be looking to jump ship every 2-3 year or whenever you feel comfortable in increasing title and pay. 40k is half of a normal person yearly wage.
Of course, if you really like your current job and would have stayed. Ask people close to you who knows your situation. Good jobs are hard to come by, toxic workplaces are everywhere at the moment
Most small businesses in Australia don’t have to pay a redundancy payout. I know that isn’t what happened as per crystalbomb’s below comment, but just information that may be useful in the future. ☺️
If they don't pay any redundancy payout, that's literally called fired. I had mine payout when I used to work for a small company back in 2018. It's just that the boss wanted to emphasise that I wasn't fired just a redundancy package. It was just 1 month of my pay in advance.
How many employees would you estimate worked for the company?
What do you mean pay in advance? Did you work for a month after you were served redundancy notice and got paid for that, or did you get an extra month of pay without having to work for it at all?
<15 employees is considered small business, so that employer wouldn’t have qualified. They legally would’ve been required to give you a redundancy payout. 🙏
I’m in NZ, and didn’t think to request that they adjust the clause in the agreement. Have never experienced having my role disestablished so 🫠 unfortunately it’s totally legal here. I’d take the money and start the new role. It’s a win win
True. In my experience voluntary redundancies are often followed up with forced redundancies. And having gone through two redundancies now, I know that your job is never truly "safe".
Just wondering if OP isn't leaving and going to reject the offer, wouldn't the management will find other way to cut cost I.e. trying to manage OP out?
I don't understand people like you who make posts like this expecting advice with less than the bare minimum information necessary to provide a view.
"Should I get the blue or the green?"
"Blue or green what?"
"Coat"
"What's it for?"
"Work"
Impossible.
OP's history being around this sub suggest she does this kind of stuff for approval from others and to subtle-brag about her situation.
She leans heavily on her being a home owner and 'having done it all by herself' whilst conveniently forgetting she disclosed she received a 200k inheritance.
The constant moaning about others treating her poorly and workplace bullying wherever she goes despite being the common denominator in all of it is very telling.
My old company was downsizing and I volunteered for a redundancy because I knew I could get a new job straight await - walked away with a big stack of cash and took a 2 week vacation before starting my new employment. So, the answer is yes - yes, you do this. There's literally no reason not to.
If I was offered a $40k redundancy, I would take it whether I had another job lined up or not. I'm confident I could find something before that ran out and I could invest the rest.
In your case, I don't understand why you're even asking the question.
Redundancy payments are partly concessionally taxed. Decide if you can use the net amount to boost your financial independence/goals. Make sure you have some control if you jump from the frying pan into the fire.
Yes provided the new job doesn’t prohibit it. Eg if you get a redundancy from a government role and then get a new government role, you sometimes aren’t allowed to keep i depending on which government.
I have been in this situation last year. While previous workspace is good, but low salary, I kept looking new role on the market. But then the company was acquired from other company, the culture was not good like it was before. Within couple of months, people leaving, then layoff 10% of employees.
I took the redundancy package and landed other role with 20% more. Like other have said, you maybe want to stay with your current company maybe next couple of months, but if you want to grow your skills set, just take the money and jump..
I was forced into a redundancy, got a job straight away so no real loss of income, then came into my current job a year later with a substational promotion. Doesn't matter if the new job doesn't work out, you'll get $40k and the chance to look for another job in your own time if you don't like it there.
Take it and get out i had my plan b lined up in hopes of my redundancy i deadset felt like a kid on xmas day when i got my walking money we seriously couldn't get out fast enough and since leaving atleast 10 others have quit after they didnt get there redundancy
Low key flex, lol.
I'd take it even if I were unsure of the new job. The fact that your existing one is even considering asking you to become redundant doesn't scream stability either.
The dream scenario, a redundancy payment with another job lined up.
Just as good is a redundancy when you plan to retire anyway, often not hard to organise in larger companies or the public service. .
I am up for retirement in 12 months (if I can afford to). My workplace just got restructured and a bunch of people got redundancy packages. I was the only one who just got moved to another area. Annoyed.
You must be too useful.
That, or they figure you are close to retirement and will be gone in the near future, and save their money ?
I was luckier. It was well known that was planning to retire and I agreed to do an unloved and limited duration transition job for about 18 months. With nearly 40 years payout was nice.
This. I plan to retire at 60 if I can, but if there is a redundancy package close by you can bet I will put in minimum effort until 65 or even 70 if I have to, to make sure they pat up
Yeah, you show them. Waste 5-10 years of your life still working when you could be out enjoying yourself. But boy oh boy HR will be annoyed.
Wouldn't be too bad with long service leave and sick leave built up.
I question your assumption that I will be doing anything that resembles what a reasonable person calls "working" in those 5-10 years lol. One of my directors who is in this situation, works almost exclusively from home and more often than not on the odd occasion I call him, I can hear him feeding his chickens.
Don’t do this man, I knew a great guy, everyday he said for 5 years he was gonna only leave when they pay him out, he finally got his payout only to drop dead 3 weeks after finally getting that long awaited package, he never even needed it he was on a old government pension scheme where he was getting 40% of his current pay extra since turning 55 and would get 70% once he stopped working for the rest of his life which still increase every year indexed to cpi
I know a guy who also did this. Umm’d and ahh’d about retiring for several years, even though he had a lot of money. Was always convinced redundancies which never came might be around the corner. We worked in heavy industry so the work was physically hard but well paid and he’d been there 30 odd years, had received an inheritance etc. Finally pulled the pin to go and died within the month. He personally never saw a single pension payment or holiday he’d booked. I’m now of the opinion that dilly dallying around retiring is incredible dumb
Sorry to hear. You make a good point
Same happened to my mates dad. Career teacher, pay out at the end with DB Super. On year two of retirement he had a massive coronary and died. Thankfully his wife was able to receive a 75% pension off what he was to receive for the rest of his life.
That's it. Basically they needed my skills and experience doing much the same job but in another area.
You should seek advice from an employment lawyer. I had a friend who had worked for a company a couple of decades. They made his entire team redundant except him, obviously because it was going to be expensive. It took some negotiation, but they eventually made him redundant as they got found for taking the piss.
I guess the thing is in my case that while the free money would have been nice I enjoy the work and the new, slightly different role is more satisfying than the previous one. They didn't make the whole team redundant, just some.
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Nah, that's not me.
The trick is to start to do your job badly, but not to a firably bad standard. Some people start on this strategy very early in their careers.
Happened to a colleague once. He was about to retire and had been working there basically out of high school. Got an awesome redundancy.
This was my mum! She did 3 days a week (instead of 5) to run down her long service a bit cos she had a feeling she was going to get a redundancy and was planning to retire anyway. A year in, there were voluntary redundancies going around and she took one!
I went to 4 days a week for the last 3 or 4 years, but via lower pay not leave. My redundancy was not really part of a round though, I worked in a niche role that was being reduced and the redundancies were not fully voluntary... younger staff were redeployed.
When you say “the public service”, which one do you mean? At least in the federal public service, they’ve been made extremely rare - you can literally google posts and questions about it and there’s basically nothing after 2013-beginning 2014.
I meant any of them. Interesting, my data may be old, I'll check with some family members for more up to date info.
Company I work for recently did a round of redundancies. Had maybe 10 people leave straight after they announced the redundancies were complete. They'd all been hoping they would get one.
I was lucky enough to do this. It made my negotiations much easier
literally just happend to half of my company. Got bought out, part of the terms were they get made redundant and start from square 1 at the new company. Is risky long term but short term its a sick payout and time to look for something else without taking a financial hit.
I once got offered a job at 2:30pm on a friday, and at 2:35pm I was made redundant from my existing job. After the HR meeting I called my (about to be new) boss to let him know what went down (he was ex- the same employer lol). We laughed and laughed.
Free money…. Do I take it?
Nah, I always reject my powerball winnings. I’ve heard the horror stories of people who won the lottery.
Easy way to declare bankruptcy - free money
Yeah just too much hookers and blow. Who wants that? I want to live a wholesome life queuing up in front of soup kitchens
Don’t forget to tip your landlord
If you were leaving anyways, yes.
I am debating. This job is stable but future opportunities are limited.
Just take it and play the game. You should be looking to jump ship every 2-3 year or whenever you feel comfortable in increasing title and pay. 40k is half of a normal person yearly wage. Of course, if you really like your current job and would have stayed. Ask people close to you who knows your situation. Good jobs are hard to come by, toxic workplaces are everywhere at the moment
>toxic workplaces are everywhere at the moment Amen to that.
40k is a lot. I was made redundant start of May and got nothing
That’s not legal necessarily? Have you talked to anyone about this?
Most small businesses in Australia don’t have to pay a redundancy payout. I know that isn’t what happened as per crystalbomb’s below comment, but just information that may be useful in the future. ☺️
If they don't pay any redundancy payout, that's literally called fired. I had mine payout when I used to work for a small company back in 2018. It's just that the boss wanted to emphasise that I wasn't fired just a redundancy package. It was just 1 month of my pay in advance.
How many employees would you estimate worked for the company? What do you mean pay in advance? Did you work for a month after you were served redundancy notice and got paid for that, or did you get an extra month of pay without having to work for it at all?
Possibly 30 - 40. It's been a while
<15 employees is considered small business, so that employer wouldn’t have qualified. They legally would’ve been required to give you a redundancy payout. 🙏
I’m in NZ, and didn’t think to request that they adjust the clause in the agreement. Have never experienced having my role disestablished so 🫠 unfortunately it’s totally legal here. I’d take the money and start the new role. It’s a win win
Small to medium. I've worked with people who got 200K redundancies.
200k redundancies in Aus? That’s really unusual.
Is the job really stable if they are offering redundancy packages?
True. In my experience voluntary redundancies are often followed up with forced redundancies. And having gone through two redundancies now, I know that your job is never truly "safe".
Stepping stones. Most people get promoted by leaving the company for another one.
The new job is stable? It seems like all upside
If they offered redundancy they must want you out. Take the money and run
Just wondering if OP isn't leaving and going to reject the offer, wouldn't the management will find other way to cut cost I.e. trying to manage OP out?
Take the money Could turn into an involuntary redundancy when you don’t have a job lined up
Why are you confident your workplace is stable long term if they’re offering a redundancy?
True, and I don't quite like it here either.
OP. I'm wondering what happens if you reject the offer. Are they gonna manage you out? Is cost cutting happening across the board?
I don't understand people like you who make posts like this expecting advice with less than the bare minimum information necessary to provide a view. "Should I get the blue or the green?" "Blue or green what?" "Coat" "What's it for?" "Work" Impossible.
OP's history being around this sub suggest she does this kind of stuff for approval from others and to subtle-brag about her situation. She leans heavily on her being a home owner and 'having done it all by herself' whilst conveniently forgetting she disclosed she received a 200k inheritance. The constant moaning about others treating her poorly and workplace bullying wherever she goes despite being the common denominator in all of it is very telling.
So, you don't like the job, you have another job lined up, and you are being offered $40k to leave the job....that you don't like...........
Why is this even a question. Of course take the redundancy.
The question seems to be because the new job may not be the right one.
My old company was downsizing and I volunteered for a redundancy because I knew I could get a new job straight await - walked away with a big stack of cash and took a 2 week vacation before starting my new employment. So, the answer is yes - yes, you do this. There's literally no reason not to.
If I was offered a $40k redundancy, I would take it whether I had another job lined up or not. I'm confident I could find something before that ran out and I could invest the rest. In your case, I don't understand why you're even asking the question.
Yeah jump that shite
Say thank you, take the cash and the new job
Golden handjob. Or handshake. I forget which.
Either would be fine 😉.
Redundancy payments are partly concessionally taxed. Decide if you can use the net amount to boost your financial independence/goals. Make sure you have some control if you jump from the frying pan into the fire.
I wouldn't even think about it, I'm taking that 40K and walking straight out the door
You should take it regardless. They’re offering you money to leave a job that you should hate anyway
My first thought: OP dumb for even asking this question
Yes provided the new job doesn’t prohibit it. Eg if you get a redundancy from a government role and then get a new government role, you sometimes aren’t allowed to keep i depending on which government.
Can't believe you have to consider this
She doesnt at all - OP's history being around this sub suggest she does this kind of stuff to subtle-brag about her situation
op hates free money
If they’re willing to pay 40k they will pay 50k. Counter offer 50k and then go to your new job!
Yes but only if you want money.
[You like money? I like money!](https://youtu.be/sZHCVyllnck)
I can't believe you like money too!
Of course? You were make redundant, so you are owed a severance package.
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Confirming this, rip childcare subsidy and hecs
isn't genuine redundancy tax free?
Wdym? Eve if I'm taking it, I'm thinking of waiting till 1 July due to tax 3 stage cuts. what else do I need to be mindful of?
Would taking the package after the EOFY then starting the new job offset some tax a bit?
I have been in this situation last year. While previous workspace is good, but low salary, I kept looking new role on the market. But then the company was acquired from other company, the culture was not good like it was before. Within couple of months, people leaving, then layoff 10% of employees. I took the redundancy package and landed other role with 20% more. Like other have said, you maybe want to stay with your current company maybe next couple of months, but if you want to grow your skills set, just take the money and jump..
I was forced into a redundancy, got a job straight away so no real loss of income, then came into my current job a year later with a substational promotion. Doesn't matter if the new job doesn't work out, you'll get $40k and the chance to look for another job in your own time if you don't like it there.
Take the money. The reality is they can make you redundant anyway so take it and hop to your next job
Take the move, and then keep an eye out for a higher position at your old company and come back as your old co workers boss
Take it and get out i had my plan b lined up in hopes of my redundancy i deadset felt like a kid on xmas day when i got my walking money we seriously couldn't get out fast enough and since leaving atleast 10 others have quit after they didnt get there redundancy
Do NOT fumble the bag!!!! Take the deal!!!
What’s your other play?
How does it feel to live my dream?
Low key flex, lol. I'd take it even if I were unsure of the new job. The fact that your existing one is even considering asking you to become redundant doesn't scream stability either.
The new job can’t be less stable than one where you have literally just been offered redundancy. This is an absolute no-brainer.
Take as much as you can and as often as you can until you get your ideal job
Take the hit.
They're paying you to leave? Go for it, especially if you have something else lined up.