Voluntary retrenchment vs. resignation

Due to a huge company restructure, I have the choice of taking a voluntary retrenchment or resigning from my job.

Financially, the choices are indentical, as the final paycheck will be the same either way, as will the length of employment remaining, so my only choice really is what will look better to future employers.

I have no experience in this field, and have received conflicting advice. Some think retrenchment looks better than a resignation, as a company restructure is not a comment on your value as a employee. Others have said that resigning would look better, as you’re leaving on your own terms, and being retrenched looks like a way to get rid of the non-productive workers.

I have less than 24 hours to choose which option I will take, so I would really appreciate any advice or thoughts on how future employers might view this. Many thanks in advance.

I’d take the voluntary retrenchment, especially if it is pretty massive. I mean, if it’s big news and 30% of the workforce with whole departments getting cut (as opposed to 5%), then it should be pretty obvious that it isn’t getting rid of the bottom few.

I’ve been retrenched in a merger where half the staff was replaced, a massive year end cost cutting (20% staff).

Again my experience is with American companies and there may be a different perception down under. In the US, there has been so much restructuing and mergers over the past 15-20 years that it is not at all abnormal to have on the CV

Has the company offered any financial incentives – extended benefits, severance package, more credit in the pension plan?

Otherwise, how “voluntary” could the retrenchment be?

Have you checked into how the options would effect collecting unemployment if that became necesary?

Thanks China Guy for that perspective.

Kunilou, there is no difference to me financially. I tried to simplify the situation, as I’m really only concerned about how future employers will view the departure. I could keep my job if I wanted to, (though it would be different to the position I currently hold) but would prefer to leave. The choice I’m offered, is whether to resign my position, or to have my position made redundant. I am choosing to leave the company, and just need to decide which way to leave, hence it is “voluntary”. Finances are not an issue, as they work out equally, whichever choice is made.

Wolfman, collecting unemployment is not an option.

Any employers out there have an opinion on what looks better on a resume? Any HR people, interviewers, managers, etc?