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.
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.
Examplesedit
LM Ericsson implemented a VR programme in the spring of 2006. It offered the programme to 17,000 employees in Sweden between the ages of 35 and 50. Those who voluntarily left were given between 12 and 16 months of severance, 50,000 kronor, and a course in entrepreneurship coupled with job placement services. The goal was to have a maximum of 1,000 employees volunteer for the programme.[citation needed]
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]
^"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
February 16, 2024
voluntary, redundancy, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, sept. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Voluntary redundancy news newspapers books scholar JSTOR September 2014 Learn how and when to remove this template message 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 Contents 1 Reasons 2 Examples 3 See also 4 ReferencesReasons editA 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 editLM Ericsson implemented a VR programme in the spring of 2006 It offered the programme to 17 000 employees in Sweden between the ages of 35 and 50 Those who voluntarily left were given between 12 and 16 months of severance 50 000 kronor and a course in entrepreneurship coupled with job placement services The goal was to have a maximum of 1 000 employees volunteer for the programme citation needed 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 editCompromise agreement Golden boot compensation Golden parachute Layoff Restructuring Severance packageReferences edit 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 Retrieved from https en wikipedia org w index php title Voluntary redundancy amp oldid 1152362341, wikipedia, wiki, book, books, library,
