Unpaid leave... any thoughts?
Discussion
Seems to be a fair few companies asking employees to start doing this, which is not surprising given the circumstances.. This idea has been used very much from blue colar workers, now into white colar.. It saves the company cash in the short time, if they have a large workforce..
As I work for an American company, it is unfortunate that our American friends have to take this involantry, however it is volantry in the UK, where I am based..They want us to take 2 weeks.
It also saves on laying off people, which is a good thing. Anybody else been asked to take unpaid leave and what are your thoughts?
As I work for an American company, it is unfortunate that our American friends have to take this involantry, however it is volantry in the UK, where I am based..They want us to take 2 weeks.
It also saves on laying off people, which is a good thing. Anybody else been asked to take unpaid leave and what are your thoughts?
Unpaid leave is a tricky one, taking a salary cut and working fewer days would be preferable for me.
A good friend of mine works at a big 4 (accountancy) firm in London in the financial services tax team. He's been offered and taken 3 months off at a third of his pay.
He's in the position that he rents accommodation and has no ties. As such he's given notice on his flat and is off to spend time travelling with a decent income and no fixed outgoings.
A good friend of mine works at a big 4 (accountancy) firm in London in the financial services tax team. He's been offered and taken 3 months off at a third of his pay.
He's in the position that he rents accommodation and has no ties. As such he's given notice on his flat and is off to spend time travelling with a decent income and no fixed outgoings.
Most companies I know of who are implementing this sort of thing are going down the route of reduced pay rather than unpaid time off. However, in certain circumstances, such as where you have a final salary pension scheme, unpaid time off may be the better option as your actual pensionable salary would remain unchanged.
I have just agreed to do this, like you I work for an american company.
Basically a 10% reduction in pay, but I take the time off, so I have just effectively bought extra holidays (17.5 days to take between now and Dec 31st).
The agreement I signed has a few proviso's
1, Its a temporary deal, only effective until 31st Dec 2009.
2, Should I still be made redundant my redundancy pay would be based on my pay prior to the reduction.
3, Holidays are not affected, so I still get my full entitlement.
4, Pension is not affected either (final salary scheme).
Its not ideal, but by the same token keeps us safe for now
Basically a 10% reduction in pay, but I take the time off, so I have just effectively bought extra holidays (17.5 days to take between now and Dec 31st).
The agreement I signed has a few proviso's
1, Its a temporary deal, only effective until 31st Dec 2009.
2, Should I still be made redundant my redundancy pay would be based on my pay prior to the reduction.
3, Holidays are not affected, so I still get my full entitlement.
4, Pension is not affected either (final salary scheme).
Its not ideal, but by the same token keeps us safe for now
I'm thinking of approaching my company to do this and have some time off in January (we are quiet and the boss is a total pain in the arse duruing this time and I usually want to leave anyway) My concern would be weather things like redudancy pay would be reset if your effectively ending a period of employment and starting a new one when you go back?
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