Average redundancy offer in private sector?

Temrael

Hi there,

I've worked in a very large, highly successful private company for the last decade and was told last week that I am "at risk" of redundancy from next year due to our office closing.

We are being asked to assist in the migration of our work to a new team to be hired at the company's head office 250 miles away. This will likely make the next year or so hard work with increased travelling, training people to do our jobs etc. etc.

We've been offered 2 weeks pay per year of service, which I know is the company's standard offer. This is obviously in excess of the statutory minimum but I wondered how generous it is in the private sector these days? The company is, as I say, very profitable and not in trouble in the slightest. I obviously want to get the best settlement I can for my family.

TadleyBaggie

The twice I've been redundant I got 1 month for every year worked. However in the first job it was capped at 12 months maximum payment. The last time I got the full 15 months payment. In the latter job the standard payment was 2 weeks for every year but but because I was over 55 at the time I got an enhanced payment.

Temrael

Thanks for that, that's interesting.

I'm very conscious that two weeks is much more than many people on here receive but there certainly seems to be the precedent for larger payments and so if I can negotiate something higher I'll certainly try to do so.

asajj

It depends on sector, company's situation etc. Overall you are already getting a generous offer and there is little you can do to show an average payment as most of pay related stuff is confidential anyway.
If you believe it is possible you can negotiate a retention bonus though.

My company went through re-engineering 2 years ago and they had a similar offer and it was capped at 52 weeks.

Money_saving_maniac

Work for a big employer, very profitable, only give statutory....

getmore4less

Any offers of relocation.

The negotiations could be on retention bonus to make sure the handover works and full PILON as well as 2 weeks per year

how many how low enough years to jump ship

Scorpio33

Been made redundant 3 times and each time it was one month/4weeks pay for every year you have been there.

What you have is above statutory, so even if it seems harsh, not a lot you can do about it, so why worry?

Temrael

Cheers for the responses guys.

In effect the two weeks per year is being offered as a retention bonus as it is subject to conditions on satisfactory performance, supporting the migration (increase in travelling etc.). They seem to be saying that if they deem I haven't pulled my weight sufficiently then they can revert to statutory, which feels a bit nasty to have hung over me.

There is potentially an offer of relocation but my family and I wouldn't be up for that as it would be so far from friends and family.

My notice is a bit odd as my notice period is 6 months, I think their plan is (as we are still a year out) to just formally serve notice in 6 months time. So they won't need to do PILON.

I know that in other similar waves of redundancies people have managed to negotiate up from the two weeks per year, but I'll see how I get on in my first meeting.

corf999

Big company in IT services sector - 1.5 week per year.

sew109

I have not been made redundant but had to manage And make several others redundant my company only ever paid statutory minimum even for people that had been there for 15 years plus ... However the very senior people who could make a difference to the P&L always got great pay offs which is probably why the people at the bottom of the tree got so little

mrs_T

Taking voluntary severance from a uni in two weeks, payout is one month per year up to 12 months max. untaxed plus being paid for holidays due.

Independent legal advice (paid for by employer) tells me this is relatively generous compared to others she has seen locally recently.