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If I accept an offer of a voluntary severance, which includes the waiving of some or all of the notice of termination period, what are the implications?
If you are dismissed from your employment due to redundancy, you are entitled to be paid for the full amount of your notice, as well as any redundancy payment you qualify for.
If you accept an offer of voluntary severance which involves you being required by your employer to leave immediately, you should make sure your employer agrees to pay a sum equal to your notice pay on top of your redundancy payment.
In addition, you should be paid for any holiday that you have earned but not taken by your leaving date.
Notice pay is likely to be subject to deductions for income tax and National Insurance. Sometimes notice pay can be paid free of tax. The rules are complicated, so if in doubt, take advice.
Make sure you are clear as to the final date of your employment under any voluntary severance arrangement. This date is called the 'effective date of termination'. It is very important, especially if you are thinking about any sort of tribunal claim.
Finally, bear in mind that if you accept an offer of voluntary severance, an employment tribunal is unlikely to accept that you were ‘dismissed’ from your job, so if you are considering a tribunal claim, take advice from a union rep or your legal advisor.