Redundancy advice

Kevmos

Hi, I've been offered a redundancy package out of the blue.  I have worked with the company for 11 and a half years and have had no performance review issues raised during the last 3+ years in my current role. The proposed package considering it has come out of the blue seems relatively standard and I wanted to get some advice as I feel that there is the possibility of counter-offering for a higher package as it is only myself being made redundant. 

The package is as follows:

• 11 weeks paid during the notice period, or pay-in-lieu (this would be taxed)
• The accrued holiday will be paid (this would be taxed)
• Pay for each year I have worked there (11 years so this would be 22 weeks so this would be tax-free)
  

JSA I believe would not be available due to the figure being above the savings threshold, even though payment would largely being going towards credit cards to lower my monthly repayments, once the savings fall below the threshold would I be able to claim the JSA? 

Any advice would be welcomed if anyone has experienced something similar. 

daveyjp

For new JSA any savings aren't taken into account.

It is however only paid for a maximum of 6 months and is based on NI contributions over the last 3 years.

eastcorkram

Your third point seems to be saying 2 weeks pay for each year of service. That doesn't sound standard.

Kevmos

eastcorkram said:

Your third point seems to be saying 2 weeks pay for each year of service. That doesn't sound standard.

Apologies you're correct as I've been between 22 and 41 during those years then the statutory redundancy would be a week for every year worked, therefore it's above standard against the statutory rate. I do not know if this is a company policy to offer two weeks or due to the sudden manner without supporting evidence (implying it's prejudice-based) and being singularly targetted for redundancy.

blue.peter

I find the word "offered" in your first sentence a bit odd. How much choice do you actually have? If your job genuinely is redundant, I'd have thought that your only choice would be to accept it or go without. The job will cease to exist. As long as the package is (a) consistent with your employment contract and (b) not less than the statutory minimum, I can't see that you have any leverage to push for more. Sure, you can ask, but I wouldn't hold out much hope of getting it.

So I'd start by taking a look at what your employment contract says about redundancy terms. If it's silent on the subject and you're being offered more than the minimum - and it sounds as if you are - you really don't have any basis on which you can push for more.

You've raised a point about your performance. I'm sorry, but this is irrelevant. Redundancy means that the job is no longer required, however good you have been at doing it. (I worked for a company for nearly 30 years, with good annual appraisals throughout that period. I was made redundant simply because the company decided that it no longer wanted my work done.)

This is all particularly rough on you in the present economic climate, and I sympathise. Unfortunately, sympathy is all I can offer.

Abbafan1972

blue.peter said:

I find the word "offered" in your first sentence a bit odd. How much choice do you actually have? If your job genuinely is redundant, I'd have thought that your only choice would be to accept it or go without. The job will cease to exist. As long as the package is (a) consistent with your employment contract and (b) not less than the statutory minimum, I can't see that you have any leverage to push for more. Sure, you can ask, but I wouldn't hold out much hope of getting it.

So I'd start by taking a look at what your employment contract says about redundancy terms. If it's silent on the subject and you're being offered more than the minimum - and it sounds as if you are - you really don't have any basis on which you can push for more.

You've raised a point about your performance. I'm sorry, but this is irrelevant. Redundancy means that the job is no longer required, however good you have been at doing it. (I worked for a company for nearly 30 years, with good annual appraisals throughout that period. I was made redundant simply because the company decided that it no longer wanted my work done.)

This is all particularly rough on you in the present economic climate, and I sympathise. Unfortunately, sympathy is all I can offer.

I have been made redundant and in my letter about the decision, they said that performance was one of the deciding factors, along with attendance and sickness record.  (I'd only been there since October last year).

Kevmos

Thank you for your input. I'll provide an update on how I get on.

Kevmos

Just an update, I had the follow-up meeting and I raised some concerns, broken down into health, financial and employment. I was then asked what offer would be reasonable and I provided the counter offer that raised the redundancy package by approx. £9500 and in addition moved the termination date back slightly so I will benefit from nearly 2 weeks additional pay. This was agreed and just waiting to finalise the settlement with my solicitor.

All I can suggest to someone reading this who might be in a similar situation is that think carefully about your options, put your best case forward if you think you can get an increase in the offer and present it to them in a calm, professional manner. The worst-case scenario is that they say no and you've lost out on nothing.