Reply to: Redundancy...then contracting

[Ploptimus]

I took voluntary redundancy then went consulting about 1.5 years ago. Voluntary was marginally above statutory, so considerably less that other numbers being discussed. I would say if you have the buffer like it seems you have give it a go, I have no regrets.

[Hertsseasider]

Agree with all the comments above but would also suggest, if your circumstances allow, take a break away from work/job searching - have a holiday do some jobs around the house/garden etc. I had a mini break last year (2 months) and came back really refreshed and focused

good luck !

[gwynfryn]

I was in the same position - got TUPE'd in from private company to civil service and slowly powers that be weeded us all out. I left with a redundancy payout on the Friday and started a contract on the Monday ! Civil servant 'exit' manager was besides herself...but but but...I told you I was good at my job . I skipped to my car and drove out.

So spend the time sorting your cv out
Find an accountant
Set up limited company etc
Get insurance (QDOS etc)
Bank account
I spent my last month getting all my ducks lined up

Best move I ever made, though the worst move I made was going with a local (I mean on the same road I lived) accountant, absolute nightmare. Jumped to Gorilla after 5 months - but was hesitant in the first few months etc with a truly online accountant - but they are ace and I wasted money on a local accountant who was not upto the job (basically screwed everything up and charged me anyway!)

Get some sound financial advice - I chucked a lot of my payout into a SIPP and received a pension tax rebate from HMRC that also went into the pension.

[PerfectStorm]

Exactly what I did, and if I had my time again I'd do it again.

You're in exactly the right position to give it a go.


Ignore people on here who tell you not to do it.

[Old Greg]

What’s your skill set ??

Please don’t say project management or such like - them roles are dead


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Import / export.

[GhostofTarbera]

What’s your skill set ??

Please don’t say project management or such like - them roles are dead


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[sludgesurfer]

Agree. My redundancy deal with my last permanent gig was six months salary plus a month for every year capped a 20 years. £30k tax free plus your stock vested tax free. The coffin dodgers were taking several hundred thousand pounds plus remaining members of the DB pension scheme.

Nothing statutory about these arrangements.

[tomtomagain]

Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.

Not true. I had a redundancy package in that price range and I know a good number of people who have got that level.

[simes]

Hi,

I've been a permi for near 15 years but now am one of the "chosen" few who have been asked to leave the company.

Don't really want to get into the companies position but rather focus on what to do next. Basically I would be offered around £100k to leave with £30k tax free, and the remainder taxed as normal. As you would imagine I have build up a few contacts in my time so would probably be able to source another position inside the company (bank). but given the company has changed so much I feel I am ready for a new challenge.

So my Q is - with mobility not being an issue, how is the market there for a newbie, and has anyone recently followed a similar path - although newbie in contracting, I do have years of enterprise scale infrastructure delivery.

Cheers all,

1. Brush up on typos / spelling. 'company's' and 'built'.
2. Chop the 15 years up on the CV into something that more closely resembles projects or moving around. If the bank changed owners or names, use that to your advantage.
3. In terms of the current market and impending IR35 stuff, it is safe to say, It is challenging.

So, chuck the CV out there and make it happen. If you want to.

[BlasterBates]

Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.

I was recently made redundant by a large US company and I received 6 weeks pay for each year of service. Colleagues on 15 years service were therefore getting almost 2 years of pay. I think that would be standard for a reputable international blue chip company.

Being permie has its perks.

[Lance]

Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.

30 years in the NHS as an IT band 8 would do it.
Has to be public sector to come close, or ex-public sector (utilities, rail, etc).

[uk contractor]

Seriously doubt they would give you £100K unless your a board director or senior manager! Statutory redundancy is nowhere near that level even in banking.

[jmo21]

Thanks for the prompt reply. Re the pay-off, yes I was also thinking the same. Having a ready "war chest" will make it a tad-easier. I will check out the other posts/guides as your suggest. As for the changes in the market, is that IR35 or something else? I am fully aware of that one.

cheers

yip.

[Lance]

Thanks for the prompt reply. Re the pay-off, yes I was also thinking the same. Having a ready "war chest" will make it a tad-easier. I will check out the other posts/guides as your suggest. As for the changes in the market, is that IR35 or something else? I am fully aware of that one.

cheers

you might also want to consider using a large chunk of the redundancy to put towards a pension. Just don't do that until closer to the year end and you have a better idea of what you are doing.
Find an accountant (there's a sticky to help). You dont even have to start oayuing the accountant until you get a contract. When you get your first contract the accountant should be able to set up your company in a day or two, that way you don't pay for that until you need it.

Good luck.

[Aqwsaq]

I don't have any experience of your situation, but what I would say is that a large redundancy payment is almost like a free pass to give contracting a try.

You might struggle to find a contract, so keep your eye on the permie market too, so you can drop back to permie if no contracts are forthcoming.

Apply for any and all contracts matching your skills, and see what appears. You might be surprised, and find you get something paying well quickly. People often say on here, the second contract is the most difficult to find, but same applies, it's almost like a free pass to find the second one - obviously you current situation matters - any upcoming wedding, children, house move might preclude you from being too adventurous.

There are a few changes happening in the contractor market the last couple of years, so have a read about them elsewhere on here, read some of the threads by people struggling to find contracts, read the newbie guides (so as not to anger the NLUK bear) so you can fully understand what you are getting into - it's not all massive day rates, cigars, and fast cars (for everyone anyway

Thanks for the prompt reply. Re the pay-off, yes I was also thinking the same. Having a ready "war chest" will make it a tad-easier. I will check out the other posts/guides as your suggest. As for the changes in the market, is that IR35 or something else? I am fully aware of that one.

cheers