Redundancy/settlement advice

Tina3613

Hi, I’m looking for some advice as I’m at a crossroads. I’ve worked for a large pharma company for 10.5 years, where I’ve progressed to a salary of £75k (excluding annual bonus of approx 10k). Last year, my team was made redundant, and I was offered a fixed-term maternity cover role in a completely different area of the business. Despite having no prior experience in this field, I took the opportunity to learn and now, after a year, I’m starting to enjoy it but not sure if I want to be in this field long term. The maternity cover has now ended, and as the employee isn’t returning, they’ve offered me a permanent contract in this role. Alternatively, I’m still eligible for a settlement (around £33k, though I believe I could negotiate up to £40k). 

I’m torn on whether to take the permanent role or the settlement. On one hand, I’m interested in a career change, but on the other, I’m nervous about leaving a well-paying job and the financial security that comes with it, especially with my fixed mortgage ending in two months. I’m also responsible for all bills as a single woman (I’m 34 years old)

I’ve been exploring the job market but haven’t had much luck with roles offering salaries around £70k or more. My fixed-term contract ends on March 31st, so I need to make a decision soon.

Any advice or thoughts would be greatly appreciated!

LeafGreen

I'm not sure it's advice, but personally I would take the permanent contract.  Stick it out for a while, see where it goes.  If you ultimately decide it's not for you you have the luxury of time to look for another role.  The 40K could get eaten into quite quickly if you take that but don't find something else straight away, and if you have to take a pay cut then it probably wouldn't be all that long until you'd have more money overall taking the perm contract than taking the redundancy with a possible break in employment + pay cut.  

Tina3613

Thank you, this is really helpful. I think this is the best route. 

Undervalued

Tina3613 said:

Hi, I’m looking for some advice as I’m at a crossroads. I’ve worked for a large pharma company for 10.5 years, where I’ve progressed to a salary of £75k (excluding annual bonus of approx 10k). Last year, my team was made redundant, and I was offered a fixed-term maternity cover role in a completely different area of the business. Despite having no prior experience in this field, I took the opportunity to learn and now, after a year, I’m starting to enjoy it but not sure if I want to be in this field long term. The maternity cover has now ended, and as the employee isn’t returning, they’ve offered me a permanent contract in this role. Alternatively, I’m still eligible for a settlement (around £33k, though I believe I could negotiate up to £40k). 

I’m torn on whether to take the permanent role or the settlement. On one hand, I’m interested in a career change, but on the other, I’m nervous about leaving a well-paying job and the financial security that comes with it, especially with my fixed mortgage ending in two months. I’m also responsible for all bills as a single woman (I’m 34 years old)

I’ve been exploring the job market but haven’t had much luck with roles offering salaries around £70k or more. My fixed-term contract ends on March 31st, so I need to make a decision soon.

Any advice or thoughts would be greatly appreciated!

The two parts I have highlighted slightly contradict each other! Your "team" found out it wasn't as secure as they hoped! That said, your position may be more secure that most and only you can make a judgement on that.

You don't say how long you have worked for this firm? Is the redundancy figure the statutory minimum or was it an enhanced "voluntary" offer?

In any new job elsewhere you will have no security or redundancy entitlement for two years.

Also, in doing your sums, remember that the first £30K of any redundancy / settlement is tax free with any excess being taxed as if it were earnings. So, it is worth a bit more than it seems.

You could take a slightly lower paid job elsewhere, if you felt it had good prospects, and effectively subsidise the difference for a few years from the settlement.

More questions than answers I'm afraid!

Hoenir

Tina3613 said:

I’ve been exploring the job market but haven’t had much luck with roles offering salaries around £70k or more. 

Last year's budget has done nothing to improve the job's market outlook. Why jump when you've no need to.