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Home » Can I Ask for Voluntary Redundancy on Health Grounds?

Can I Ask for Voluntary Redundancy on Health Grounds?

If you are struggling with your health and finding it difficult to continue working, you might be wondering whether you can ask for voluntary redundancy. This is a common concern, especially if your job is affecting your physical or mental wellbeing.

The short answer is yes, you can ask for voluntary redundancy on health grounds. However, whether your employer accepts your request depends on several factors, including whether a redundancy situation exists in the first place.

This guide explains how voluntary redundancy works, how health issues fit into the process, and what your options are so you can make a clear and informed decision.

What Is Voluntary Redundancy?

Voluntary redundancy is when your employer invites employees to apply to leave their job as part of a redundancy programme. Instead of being selected by the employer, you choose to put yourself forward.

If your application is accepted:

  • You leave your job by agreement
  • You receive a redundancy package (often more than the statutory minimum)

However, it is important to understand one key point:

Voluntary redundancy is still a redundancy dismissal, not a resignation.

This means your role must genuinely be at risk or no longer needed.

Can You Ask for Voluntary Redundancy on Health Grounds?

Yes, you can ask. But your health condition alone does not automatically entitle you to voluntary redundancy.

For voluntary redundancy to apply:

  • Your employer must already be running a redundancy process, or
  • There must be a genuine business reason for reducing roles

In simple terms:
You can request it, but your employer is not required to offer it unless redundancy is happening.

When Health Issues Become Relevant

Even though voluntary redundancy is based on business needs, your health can still play an important role in your situation.

For example, you might:

  • Be unable to continue in your current role due to illness
  • Be experiencing stress, burnout, or mental health challenges
  • Find your job is worsening your condition

In such cases, you may feel that leaving with a redundancy package is better than continuing or resigning without financial support.

What Happens If There Is No Redundancy Situation?

If your employer is not reducing staff or restructuring, voluntary redundancy is unlikely to be available.

In that situation, your employer may instead consider:

Sickness Absence or Sick Leave

You may be entitled to statutory or contractual sick pay while you recover.

Reasonable Adjustments

If your condition qualifies as a disability under UK law, your employer must consider reasonable adjustments, such as:

  • Reduced hours
  • Different duties
  • Flexible working

Capability Dismissal

If you are unable to continue working even with support, your employer may consider ending your employment on capability grounds (due to ill health), not redundancy.

Settlement Agreement

Sometimes, employers may agree to a negotiated exit with a financial package, even if redundancy does not apply.

Can You Request Voluntary Redundancy Yourself?

Yes, you can raise the idea with your employer.

You might do this:

  • During a redundancy consultation
  • If your company invites volunteers
  • Or even informally, if you believe restructuring may happen

However, remember:

Your employer has full discretion to accept or refuse your request.

They may decline if:

  • Your role is still essential
  • They cannot afford the redundancy payment
  • Your skills are needed for the business

How Employers Decide Whether to Accept Your Request

Employers usually assess voluntary redundancy applications based on business needs, not personal circumstances alone.

They may consider:

  • Whether your role is genuinely at risk
  • The impact on the team or department
  • Whether your skills are critical
  • The cost of your redundancy package

Your health may be taken into account, but it is not usually the deciding factor.

Your Rights If You Are Dealing With Health Issues

If your health is affecting your work, you still have important legal protections.

Protection Against Discrimination

Under the Equality Act 2010, you must not be treated unfairly because of a disability.

This includes:

  • Being pressured to leave
  • Being denied opportunities unfairly
  • Being treated differently without justification

Right to Reasonable Adjustments

If your condition qualifies as a disability, your employer must consider changes to help you continue working.

Right to a Fair Process

Even if your employment ends, your employer must follow a fair and lawful process.

This is important:
Voluntary redundancy should never be used to push you out because of your health.

Should You Choose Voluntary Redundancy Because of Your Health?

This is a personal decision, and it depends on your situation.

It Might Make Sense If:

  • Your health makes it difficult to continue working
  • A redundancy scheme is already available
  • The financial package gives you security
  • You are planning a career change or recovery period

You Should Be Careful If:

  • You are unsure about future income
  • Your condition might improve with adjustments
  • You are being pressured to leave
  • You have not explored other options

Before deciding, it is always worth asking:

  • Can my role be adjusted instead?
  • Am I financially prepared to leave?
  • Is this my choice, or am I being pushed?

What Will You Be Paid If You Take Voluntary Redundancy?

If your application is accepted, you are usually entitled to:

Statutory Redundancy Pay

If you have at least 2 years of service, you may receive:

  • 0.5 week’s pay (under age 22)
  • 1 week’s pay (22 to 40)
  • 1.5 weeks’ pay (41 and over)

There are caps on weekly pay and total payout.

Enhanced Redundancy Pay

Many employers offer more than the legal minimum to encourage volunteers.

Notice Pay

You may:

  • Work your notice period
  • Be placed on garden leave
  • Receive payment in lieu of notice (PILON)

Holiday Pay

Any unused holiday is usually paid.

Tax Considerations

  • Redundancy pay up to £30,000 is usually tax-free
  • Other payments (like notice pay) are taxable

Do You Need to Sign a Settlement Agreement?

In most voluntary redundancy cases, yes.

A settlement agreement:

  • Confirms the terms of your exit
  • Includes your payments and benefits
  • Requires you to waive most legal claims

You must take independent legal advice before signing.
Your employer usually pays for this advice.

What Are the Risks of Choosing Voluntary Redundancy?

While voluntary redundancy can offer a clean exit, there are risks you should consider.

Job Uncertainty

You may not find new work quickly, especially if your health limits your options.

Loss of Benefits

You may lose:

  • Pension contributions
  • Healthcare
  • Other workplace benefits

Impact on Future Claims

Once you sign a settlement agreement, you usually cannot bring claims against your employer.

Alternatives to Consider Before Leaving

Before applying for voluntary redundancy, it is worth exploring other options.

Flexible Working

You may be able to reduce hours or work differently.

Redeployment

Your employer might offer a different role more suited to your condition.

Medical Support

Occupational health assessments can help identify adjustments.

Negotiated Exit

If redundancy is not available, you may still be able to negotiate a settlement.

How to Ask for Voluntary Redundancy on Health Grounds

If you decide to move forward, keep your approach clear and professional.

You can:

  • Speak to HR or your manager
  • Explain your situation honestly
  • Express your interest in any redundancy scheme
  • Ask about your options

You do not need to go into unnecessary detail, but providing context can help your employer understand your position.

Key Takeaways

  • Yes, you can ask for voluntary redundancy on health grounds.
  • However, it only applies where a genuine redundancy situation exists.
  • Your employer does not have to accept your request.
  • Your health gives you protections, but not an automatic right to redundancy.
  • Always consider alternatives before deciding to leave.
  • Make sure you understand the financial and legal implications.

Final Thoughts

If your health is affecting your ability to work, it is completely understandable to look for a way out that offers financial security. Voluntary redundancy can sometimes provide that opportunity, but it is not guaranteed.

The most important thing is to make a decision that supports both your wellbeing and your future. Take your time, explore your options, and seek advice if needed.

A well-informed choice today can make a significant difference to your long-term stability and peace of mind.