position being made redundant but being asked to resign?

[south]

Hi, I've worked for my current employer for 9 years and last week was invited to what turned out to be a protected discussion. In this discussion I was informed that my role is being made redundant as a result of restructure and was given 3 options. 1 they would try and find a suitable role, 2 redundancy with statutory payment only or 3. I could resign and get a settlement agreement meaning I'd get more than if they made me redundant. Option 3 also came with the chance to go back as a lower paid employee as a contractor. At the time, I was in shock but since then I've had time to think and can't quite work out why this is so heavily weighted towards option 3. I'd welcome your comments and value your thoughts as how taking opt 3 would affect me and how this would look with potential employers.
Thanks

[sean5302]

Re: position being made redundant but being asked to resign?

Hello and welcome to the Forum.
Yours is quite a common situation as there is much reorganisation going on these days.
1. Option 1 would be your best choice. If they find you a suitable role, you carry on pretty much unaffected.
2. Option 2 seems harsh. After 9 years service I'd expect them to offer more than the minimum, as long as you haven't caused them problems.
3. Option 3 is a very good option for the company but a terrible option for you. Yes, you'd get a higher pay-off but then you'd become a contractor, with loss of service rights. They could turn round the day after and say your services are no longer required. I suggest you weigh up your loss of salary as a lower-paid employee (do you mean employee or contractor?) versus the likelihood of losing your job altogether. What is the likelihood of option 1? That's the one I'd aim for.

[south]

Re: position being made redundant but being asked to resign?

the problem is that based on the surprising stance they have taken, I am certain that my days are numbered anyway. I feel option 1 is likely to be something that I would not find suitable and by pushing for it they then say ok option 2 only. I feel I'm over a barrel.

[sean5302]

Re: position being made redundant but being asked to resign?

I see.
There is a big difference between them pushing you out and you seeming to have chosen to go, if you know what I mean. A company would always wish to be seen as having co-operated with you in your choice to leave.
What financial difference is there between options 2 and 3?
If they offer you a suitable alternative role, at the same or higher salary, your service is preserved, it doesn't start from scratch.
I would put the ball back in their court. They are making your job redundant. Let them find you a suitable alternative.
If you don't like the new job, you have time to look for something else.

[south]

Re: position being made redundant but being asked to resign?

I see.
There is a big difference between them pushing you out and you seeming to have chosen to go, if you know what I mean. A company would always wish to be seen as having co-operated with you in your choice to leave.
What financial difference is there between options 2 and 3?
If they offer you a suitable alternative role, at the same or higher salary, your service is preserved, it doesn't start from scratch.
I would put the ball back in their court. They are making your job redundant. Let them find you a suitable alternative.
If you don't like the new job, you have time to look for something else.

Thanks for your advice Sean. I and my family have had the worst weekend thinking about the implications and my boss who I've helped get his company to this level seemingly thinks tough sh*t.

Disgusted, Shocked, Deflated etc. It's an SME so very much down to the owner who for some reason now thinks I'm surplus to requirements and I dare say there are plenty still in his plans who are riding on this too.

[sean5302]

Re: position being made redundant but being asked to resign?

I'm very sorry to read this. There are plenty of very good people here who will help you as things develop.
It's a sad fact that companies think of new ways of providing their services, possibly at a cheaper cost, by reducing staff and combining tasks. If it all goes horribly wrong, they think they can just recruit new people, forgetting about the time taken before someone reaches full performance.
It's probably true that someone thinks they can get rid of you and save your money.
The upside is that you have very real skills, which you can use on a new path.
If I were you, I'd maximise my opportunities now. I'd ask them to find you a suitable job, whilst lookung for another job for yourself.
If you accept redundancy, you're immediately going to panic and look for something else, which might not be the best job long term.
From what you've just written, I definitely wouldn't go as a contractor. Dead easy to dispense with you and if you think that's what they're up to, trust your own judgment.
Option 1 all the way.
Remember that the boss of the SME will be guided by his "henchmen". You don't know what they are scheming, maybe to protect themselves. It doesn't really matter. You need to plan for your own future and Option 1 will give you this.
Keep us informed and we'll help you.

[south]

Re: position being made redundant but being asked to resign?

I'm very sorry to read this. There are plenty of very good people here who will help you as things develop.
It's a sad fact that companies think of new ways of providing their services, possibly at a cheaper cost, by reducing staff and combining tasks. If it all goes horribly wrong, they think they can just recruit new people, forgetting about the time taken before someone reaches full performance.
It's probably true that someone thinks they can get rid of you and save your money.
The upside is that you have very real skills, which you can use on a new path.
If I were you, I'd maximise my opportunities now. I'd ask them to find you a suitable job, whilst lookung for another job for yourself.
If you accept redundancy, you're immediately going to panic and look for something else, which might not be the best job long term.
From what you've just written, I definitely wouldn't go as a contractor. Dead easy to dispense with you and if you think that's what they're up to, trust your own judgment.
Option 1 all the way.
Remember that the boss of the SME will be guided by his "henchmen". You don't know what they are scheming, maybe to protect themselves. It doesn't really matter. You need to plan for your own future and Option 1 will give you this.
Keep us informed and we'll help you.

Thanks very much for your help. Does the suitable alternative job have to be on the same salary as I can't take a pay cut really.

[sean5302]

Re: position being made redundant but being asked to resign?

It's all about "reasonableness".
You should be asked to agree with their selection.
They shouldn't offer you different hours, nights versus days etc. The salary should be the same and so should your status.
As it's an SME, this might be difficult so I think your tenure there might not be long.
Can you think of a suitable job for yourself? Exactly what changes to working practices have they planned? If they open up to you, you should see an opening for yourself.
I worry that this is just a money-saving exercise for them. They'd be happy for you to just walk away. You need to make that hard for them, so be co-operative.
Lastly, get some sunshine on your face. Be positive and present yourself as an asset. You are, you know. You wouldn't have been employed there for 9 years otherwise.
The ball is really in their court now, but your job search needs to start today, in earnest.