A scheme where employees can choose to leave the organization in exchange for a severance package.
Voluntary redundancy (VR) is a scheme in which an employer offers employees the option to leave the organization voluntarily in exchange for an enhanced redundancy package — typically greater than the statutory minimum. VR is often used when an organization needs to reduce headcount but wants to avoid compulsory redundancies, which are more damaging to morale and employer brand. The employer retains the right to accept or reject VR applications based on business need. HR software manages VR applications, tracks expressions of interest, and calculates redundancy packages.
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