Not happy with redundancy offer

TELLIT01

Marcon said:

cents2dollars said:

I have worked for my company (a major UK employer) for 14 years. There is talk of redundancies and the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay of normal taxable wage as that's my notice period. There is no negotiation its take it or have it forced upon you. 

Having it forced upon you is the better option, especially if you have something like mortgage protection which would not pay out except in cases of forced redundancy. 

Yes and no.  When we were asked about volunteering for redundancy none of us had to put anything in writing.  We just had a conversation with our managers.  The package was a long way above statutory figures so there was no lack of volunteers.  As far as anybody outside the company was concerned it was forced redundancy.  The redundancies themselves were genuine and caused by the merging of teams from different sites resulting in excess managers, team leaders etc.

Manxman_in_exile

thebrexitunicorn said:

cents2dollars said:

I have worked for my company (a major UK employer) for 14 years. There is talk of redundancies and the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay of normal taxable wage as that's my notice period. There is no negotiation its take it or have it forced upon you. 

If you’ve worked continuously for the company for 14 years the minimum notice they can legally give is 12 weeks, regardless of what the contract says. 

But they are giving him that, aren't they (which equates to £9k) plus another 4 weeks on top of that?

At least that's what I interpret "... the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay... " to mean.

getmore4less

Manxman_in_exile said:

thebrexitunicorn said:

cents2dollars said:

I have worked for my company (a major UK employer) for 14 years. There is talk of redundancies and the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay of normal taxable wage as that's my notice period. There is no negotiation its take it or have it forced upon you. 

If you’ve worked continuously for the company for 14 years the minimum notice they can legally give is 12 weeks, regardless of what the contract says. 

But they are giving him that, aren't they (which equates to £9k) plus another 4 weeks on top of that?

At least that's what I interpret "... the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay... " to mean.

but that is not legal with 14 years service
It needs to be 14 weeks redundancy pay AND 12 weeks notice pay.

As the 9k is tax free it cannot be including any notice pay, 14 weeks at the cap is £544*14 = £7616 (+- depending on age more if 42 or older).

Doshwaster

cents2dollars said:

I have worked for my company (a major UK employer) for 14 years. There is talk of redundancies and the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay of normal taxable wage as that's my notice period. There is no negotiation its take it or have it forced upon you. 

That's what I got when I was made redundant 3 years ago - just statutory redundancy pay plus my month's notice and accrued holiday paid up. I didn't mind - I already had another job lined up and the redundancy money paid for a nice holiday before starting the new job so it was effectively a bonus for leaving a job which I was going to quit anyway.

Manxman_in_exile

getmore4less said:

Manxman_in_exile said:

thebrexitunicorn said:

cents2dollars said:

I have worked for my company (a major UK employer) for 14 years. There is talk of redundancies and the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay of normal taxable wage as that's my notice period. There is no negotiation its take it or have it forced upon you. 

If you’ve worked continuously for the company for 14 years the minimum notice they can legally give is 12 weeks, regardless of what the contract says. 

But they are giving him that, aren't they (which equates to £9k) plus another 4 weeks on top of that?

At least that's what I interpret "... the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay... " to mean.

but that is not legal with 14 years service
It needs to be 14 weeks redundancy pay AND 12 weeks notice pay.

As the 9k is tax free it cannot be including any notice pay, 14 weeks at the cap is £544*14 = £7616 (+- depending on age more if 42 or older).

Sorry - I didn't read it properly

Apologies to thebrexit unicorn!

Marcon

TELLIT01 said:

Marcon said:

cents2dollars said:

I have worked for my company (a major UK employer) for 14 years. There is talk of redundancies and the offer is basic statutory redundancy pay which for me will be about £9k tax free. Then on top will be the 4 weeks pay of normal taxable wage as that's my notice period. There is no negotiation its take it or have it forced upon you. 

Having it forced upon you is the better option, especially if you have something like mortgage protection which would not pay out except in cases of forced redundancy. 

Yes and no.  When we were asked about volunteering for redundancy none of us had to put anything in writing.  We just had a conversation with our managers.  The package was a long way above statutory figures so there was no lack of volunteers.  As far as anybody outside the company was concerned it was forced redundancy.  The redundancies themselves were genuine and caused by the merging of teams from different sites resulting in excess managers, team leaders etc.

I was responding to a specific question where there was no extra loot on the table for volunteers, so 'taking it' made no sense in that situation.

Completely agree it makes sense to think again if you are being offered a much better deal for putting your name in the ring for voluntary redundancy. 

theoretica

ttc39 said:

Hello
been working for company for 15 years . Job role is being made redundant . 

New roles offered ( basically same job different title but they want to pay less wages ) 

settlement agreement is not good . Basic statutory money and only 3 months wage  as enhanced payment and they want me to work the 12 weeks notice .

what’s the best way to negotiate a better deal ?  

To negotiate above the legal and contractual minimum you need to offer them something they want and don't already have (eg if they need 10 people to accept the redundancy and only 2 people have).  If they have what they want there is no reason for them to offer more.

oh_really

Negotiation takes an element of positional strength, I don't see any evidence of that here.

Unless I've missed it has the op disclosed age in relation of an uplift?

getmore4less

theoretica said:

ttc39 said:

Hello
been working for company for 15 years . Job role is being made redundant . 

New roles offered ( basically same job different title but they want to pay less wages ) 

settlement agreement is not good . Basic statutory money and only 3 months wage  as enhanced payment and they want me to work the 12 weeks notice .

what’s the best way to negotiate a better deal ?  

To negotiate above the legal and contractual minimum you need to offer them something they want and don't already have (eg if they need 10 people to accept the redundancy and only 2 people have).  If they have what they want there is no reason for them to offer more.

If settlement agreement signing away your rights is something they want(as indicated) they can pay for it.

Kabcha

I am being made redundant in August. I currently have less than £16k savings and am claiming Universal Credit in addition to my part-time salary. I have a new job for September, which is also part-time, but the redundancy pay  (15k) will take my savings over the 16k limit for UC. Does that mean I have to close my UC claim and live off my redundancy pay, which I was hoping to use to pay for dental implant surgery ?  Or is there an alternative, e.g pay redundancy pay into my pension and keep the UC top-up?
Advice, please.