Faced with the health and economic crisis caused by Covid-19, some companies are offering their workers the possibility of benefiting from voluntary redundancy,in the form of incentivized redundancy or early retirement.
In this way, workers wishing to leave the company for which they work may apply for voluntary redundancy,accompanied by different compensations and benefits.
A beneficial measure for those workers who, either out of fear or necessity, prefer to stay at home at a time as complicated as the one we are living. But what are the consequences of voluntary dismissal for a company?
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What is a voluntary dismissal?
Voluntary dismissal occurs when a worker decides to extinguish the employment relationship with the company for which he works, regardless of the causes caused by that decision and the type of employment contract.
In certain circumstances, voluntary redundancy may be mutually agreed between thecompany and the worker, this being the formula to which companies are most welcoming during the coronavirus.
Unless previously agreed, termination of a voluntary contract is not accompanied bycompensation for termination of the employment relationship, but the worker may demand payment for the period worked until his resignation, including the salary of the current month, as well as the proportional part of the extraordinary pay and une enjoyed vacation.
This is the most effective formula for those workers who do not want to go to their job during the coronavirus.
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Consequences of voluntary dismissal for the company
The consequences of voluntary dismissal for a company under normal conditions must be differentiated from exceptional circumstances such as coronavirus,since at a time of ‘normality’, voluntary dismissal can be a major setback for the company. But at times like the ones we live in now, it can be a relief given the significant economic impact covid-19 is causing on businesses.
In the face of a normal situation, the undertaking should pay the end of theworker who has applied for voluntary dismissal, which refers to the payment of the month in force, the proportional share of the extraordinary payments and the days of leave that have not been enjoyed. This will be the case when the worker has notified at least 15 days in advance,otherwise the company may deduct the remaining days until the legal deadline for the notice of the term of office is met. And in the event that voluntary dismissal has not been notified and has meanta sharp setback for the company, it could even come back to court.
But in the times of coroanvirus that we are living, voluntary layoffs are taking place without notice, but by mutual agreement between the company and the worker. In this case, both company and worker would benefit ‘ . The company, because it could save an employee’s payroll at such a complicated economic time; and the worker, because he would avoid the risk of exposure to possible contagion by having to go to his job.
Voluntary dismissals with employee bonuses are being agreed duringthe coronavirus as they cannot access compensation or unemployment.
Although the Government has banned dismissals during the Coronavirus Alarm State to prevent companies from taking advantage of Covid-19 to dismiss, it does provide for voluntary dismissal, as it is carried out by mutual agreement between the company and the worker.