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Has anyone managed to negotiate their redundancy package?

2

Comments

  • Wonka_2
    Wonka_2 Posts: 950 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    london21 said:
    Wonka_2 said:

    They said they're offering an enhanced package, but it's only enhanced by around £13,000—statutory is £3,000.

    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.

    From what I understand, one month's pay per year of service is standard in the industry.

    My notice period is three months.

    Not sure your maths is mathing ? What else is included in the ‘package’ to move it from £3k to £13k ?

    if 1 month per year is standard this should have been negotiated as part of your contract on joining - it’s too late now 

    And if the notice period is 3 months then any benefits should continue for that period 
    Not sure it is common that you get a role you will be negotiating redundancy package? 
    But when you join is your only chance to negotiate it to be included in your contract - especially if it’s the industry norm. 

    And it’s really not helpful after numerous replies to start throwing in nuggets about disability and using AI/submitting SAR’s - if you don’t tell the full story to start with then every response is a waste of time 
  • london21
    london21 Posts: 2,186 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Wonka_2 said:
    london21 said:
    Wonka_2 said:

    They said they're offering an enhanced package, but it's only enhanced by around £13,000—statutory is £3,000.

    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.

    From what I understand, one month's pay per year of service is standard in the industry.

    My notice period is three months.

    Not sure your maths is mathing ? What else is included in the ‘package’ to move it from £3k to £13k ?

    if 1 month per year is standard this should have been negotiated as part of your contract on joining - it’s too late now 

    And if the notice period is 3 months then any benefits should continue for that period 
    Not sure it is common that you get a role you will be negotiating redundancy package? 
    But when you join is your only chance to negotiate it to be included in your contract - especially if it’s the industry norm. 

    And it’s really not helpful after numerous replies to start throwing in nuggets about disability and using AI/submitting SAR’s - if you don’t tell the full story to start with then every response is a waste of time 
    Thanks for your response, you asked further questions and i answered.

    Will negotiate nothing to lose and update with the outcome. 

    I have been given £500 for legal advice. 
  • Wonka_2
    Wonka_2 Posts: 950 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    london21 said:
    Wonka_2 said:
    london21 said:
    Wonka_2 said:

    They said they're offering an enhanced package, but it's only enhanced by around £13,000—statutory is £3,000.

    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.

    From what I understand, one month's pay per year of service is standard in the industry.

    My notice period is three months.

    Not sure your maths is mathing ? What else is included in the ‘package’ to move it from £3k to £13k ?

    if 1 month per year is standard this should have been negotiated as part of your contract on joining - it’s too late now 

    And if the notice period is 3 months then any benefits should continue for that period 
    Not sure it is common that you get a role you will be negotiating redundancy package? 
    But when you join is your only chance to negotiate it to be included in your contract - especially if it’s the industry norm. 

    And it’s really not helpful after numerous replies to start throwing in nuggets about disability and using AI/submitting SAR’s - if you don’t tell the full story to start with then every response is a waste of time 
    Thanks for your response, you asked further questions and i answered.

    Will negotiate nothing to lose and update with the outcome. 

    I have been given £500 for legal advice. 
    Your £500 for legal advice is only likely to cover them reading through the agreement and ensuring it’s a) legal and b) you understand the implications of it. 

    They’re certainly not going to be advising you on negotiating tactics and whether you’ve a case to take further action. 
  • london21
    london21 Posts: 2,186 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Wonka_2 said:
    london21 said:
    Wonka_2 said:
    london21 said:
    Wonka_2 said:

    They said they're offering an enhanced package, but it's only enhanced by around £13,000—statutory is £3,000.

    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.

    From what I understand, one month's pay per year of service is standard in the industry.

    My notice period is three months.

    Not sure your maths is mathing ? What else is included in the ‘package’ to move it from £3k to £13k ?

    if 1 month per year is standard this should have been negotiated as part of your contract on joining - it’s too late now 

    And if the notice period is 3 months then any benefits should continue for that period 
    Not sure it is common that you get a role you will be negotiating redundancy package? 
    But when you join is your only chance to negotiate it to be included in your contract - especially if it’s the industry norm. 

    And it’s really not helpful after numerous replies to start throwing in nuggets about disability and using AI/submitting SAR’s - if you don’t tell the full story to start with then every response is a waste of time 
    Thanks for your response, you asked further questions and i answered.

    Will negotiate nothing to lose and update with the outcome. 

    I have been given £500 for legal advice. 
    Your £500 for legal advice is only likely to cover them reading through the agreement and ensuring it’s a) legal and b) you understand the implications of it. 

    They’re certainly not going to be advising you on negotiating tactics and whether you’ve a case to take further action. 

    I'm currently negotiating on my own, but I plan to contact a lawyer recommended by my former colleague, she's used them before and said they're good.


  • MattMattMattUK
    MattMattMattUK Posts: 11,544 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    london21 said:
    Wonka_2 said:
    london21 said:
    Wonka_2 said:

    They said they're offering an enhanced package, but it's only enhanced by around £13,000—statutory is £3,000.

    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.

    From what I understand, one month's pay per year of service is standard in the industry.

    My notice period is three months.

    Not sure your maths is mathing ? What else is included in the ‘package’ to move it from £3k to £13k ?

    if 1 month per year is standard this should have been negotiated as part of your contract on joining - it’s too late now 

    And if the notice period is 3 months then any benefits should continue for that period 
    Not sure it is common that you get a role you will be negotiating redundancy package? 
    But when you join is your only chance to negotiate it to be included in your contract - especially if it’s the industry norm. 

    And it’s really not helpful after numerous replies to start throwing in nuggets about disability and using AI/submitting SAR’s - if you don’t tell the full story to start with then every response is a waste of time 
    Thanks for your response, you asked further questions and i answered.

    Will negotiate nothing to lose and update with the outcome. 

    I have been given £500 for legal advice. 
    You have £13,000 to lose if they withdraw the enhanced offer and go statutory instead, which they can do. 
  • MattMattMattUK
    MattMattMattUK Posts: 11,544 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    london21 said:
    london21 said:
    Most people would consider more than four times what they are legally obliged to pay very generous...
    london21 said:
    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.
    Yes, that is how it works.
    london21 said:
    From what I understand, one month's pay per year of service is standard in the industry.
    That would be very generous, but I would also point out if it were standard then it would be in your contract.
    london21 said:
    My notice period is three months.
    You could ask for PILON so you do not have to work it, which sounds like something they may go for to get things over and done with quicker.
    london21 said:
    My manager clearly prefers my colleague, but that's their issue. I'm going to do my best to negotiate the maximum I can, especially with the end of the year and Christmas approaching.
    You have to remember that in a negotiation it usually requires both sides to have an element of strength. They have already offered you a significantly enhanced redundancy, you want to ask for more than four times what statutory is, they could just decide that you are being unreasonable, withdraw the enhanced offer and send you out the door with statutory. Unfortunately they hold all the cards.
    london21 said:
    I started on a four-month fixed-term contract, then continued contracting for two years before becoming a permanent employee. I've now been permanent for five years and nine months.
    london21 said:

    Just found out that continious employment although i started as a contractor in 2017 there has been no break when i got made permanent. Start date (continuous service): April 2017

    • At risk date: October 2025
    • Length of service: 8½ years (approx.)

    So, if your redundancy pay is being calculated, it should reflect 8 years’ service, not just the time since you became permanent.

    Your employer must treat your service as continuous because there was no break between the fixed-term and permanent contracts.
    This is explicitly covered under Section 218 of the Employment Rights Act 1996 and is reinforced by ACAS and GOV.UK guidance.

    The second section seems AI generated so I would be somewhat wary. As I said it depends on your employment status and the specifics of that, being a "contractor" means nothing. If you were PAYE then apart from a few scenarios, the main one being your contracting was via a third party employer then yes, it would count, however if you were not PAYE then it almost certainly would not apply. What was your employment status?
    london21 said:
    Wonka_2 said:
    Negotiation is possible but depends on your value/cost to the business. 

    Given your previous posts/salary comments I’d not be expecting them to consider doubling their offer (which already seems to be double the requirement)

    Are they paying your notice period as well ? And how long is that ?

    Whilst you can ask for the 4wks per year you need to decide the worth of this vs your other asks e.g inclusion of yrs service pre-contract, redundancy/re-employment support, entitlement to bonus for current year etc etc
    notice period is 3 months will be a payment in lieu of notice and the beenfits and pension will stop from the date they gave like 2 weeks time.

    statutory is around 3k enhanced like 16k but this is 6 years of service altogether over 8 years if the contract and permanent periodi is added together. 
    So regardless of your actual length of service they are already offering you many times what they need to. You have no cards to negotiate with, they hold them all.

    The best thing to do is to get applying for new jobs, get a new job fairly quickly and then the £16k is a nice tax free bonus, with a new job and a new start.

    Thanks for the response, i have started applying.
    In 2016 I got month for each year when role moved to Poland.
    I have been singled out here to will negotiate for a better offer.
    Redundancy is not in the contract I have checked. 
    Yes, it is went in on Wednesday manager and HR were waiting for me by the lift. PILON not currently working, trying to get another role but not sure what the economy and job market is like now considering last quarter.

    I will take it to tribunal because it was predetermined and unfair. I have protective rights such as disability etc. I will request for SAR and email the CEO.

    You might have got a month for each year in a different role at a different employer, but it makes no difference to what you might get this time. You need to take the emotion out of this, just because it has happened quickly does not make it predetermined or unfair. Disability does not mean that they cannot make you redundant, they just have to tick a few more boxes. The SAR will not give you the scoring. 
    london21 said:
    Yes, I am using AI, google and ACAS as this is new only found out on Wednesday. I have been in continuous employment since April 2017 started as a 4 month contractor then became permanent when IR35 started, no break since December 2019.
    Watch out for using AI, it tends to bring in various things related to employment law that is wrong. I am not totally sure which way that impacts your continuous employment for redundancy, others on here will be able to confirm.
    london21 said:
    Sounds good but 16k is not much in reality considering my contribution and how things have unfolded. Even my previous colleagues are all shocked and one has even given me a good lawyer used before.  

    That is not how things work I am the longest serving team member, new manager started last year and has not been supportive. 2 new permanent staffs and 2 fixed contract staffs hired. The decision was made between me and another colleague but the consultation is this week. The decision has been made already. why, if there were two possible candidates for one role, we weren't both put at risk and invited to apply for it. 

    Again, that is emotion rather than rational, £16k is good when the alternative is Statutory at £3k, it can be how things work. The specifics depend on their internal process, but the reality is that either way they want you out, even if they have not done the paperwork wrong at a tribunal you would get less than £16k. 
  • prowla
    prowla Posts: 14,158 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Do check when your entitlements, pension contributions, etc. continue until.
  • gadger999
    gadger999 Posts: 149 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I got made redundant last year...we had an amazing sceme in place, negotiated by the union...4 weeks for every year upto 40 years old ..40 -50 years old 5 weeks....50 plus. 6 weeks...
    I'd just hit 60 and 40 years service .. to say it was a no brainer is an understatement 
  • london21
    london21 Posts: 2,186 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    london21 said:
    Wonka_2 said:
    london21 said:
    Wonka_2 said:

    They said they're offering an enhanced package, but it's only enhanced by around £13,000—statutory is £3,000.

    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.

    From what I understand, one month's pay per year of service is standard in the industry.

    My notice period is three months.

    Not sure your maths is mathing ? What else is included in the ‘package’ to move it from £3k to £13k ?

    if 1 month per year is standard this should have been negotiated as part of your contract on joining - it’s too late now 

    And if the notice period is 3 months then any benefits should continue for that period 
    Not sure it is common that you get a role you will be negotiating redundancy package? 
    But when you join is your only chance to negotiate it to be included in your contract - especially if it’s the industry norm. 

    And it’s really not helpful after numerous replies to start throwing in nuggets about disability and using AI/submitting SAR’s - if you don’t tell the full story to start with then every response is a waste of time 
    Thanks for your response, you asked further questions and i answered.

    Will negotiate nothing to lose and update with the outcome. 

    I have been given £500 for legal advice. 
    You have £13,000 to lose if they withdraw the enhanced offer and go statutory instead, which they can do. 
    Negotiation is allowed, i asked them.
  • london21
    london21 Posts: 2,186 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    london21 said:
    london21 said:
    Most people would consider more than four times what they are legally obliged to pay very generous...
    london21 said:
    The redundancy payment is tax-free, but the notice period and any unused holiday pay are taxable.
    Yes, that is how it works.
    london21 said:
    From what I understand, one month's pay per year of service is standard in the industry.
    That would be very generous, but I would also point out if it were standard then it would be in your contract.
    london21 said:
    My notice period is three months.
    You could ask for PILON so you do not have to work it, which sounds like something they may go for to get things over and done with quicker.
    london21 said:
    My manager clearly prefers my colleague, but that's their issue. I'm going to do my best to negotiate the maximum I can, especially with the end of the year and Christmas approaching.
    You have to remember that in a negotiation it usually requires both sides to have an element of strength. They have already offered you a significantly enhanced redundancy, you want to ask for more than four times what statutory is, they could just decide that you are being unreasonable, withdraw the enhanced offer and send you out the door with statutory. Unfortunately they hold all the cards.
    london21 said:
    I started on a four-month fixed-term contract, then continued contracting for two years before becoming a permanent employee. I've now been permanent for five years and nine months.
    london21 said:

    Just found out that continious employment although i started as a contractor in 2017 there has been no break when i got made permanent. Start date (continuous service): April 2017

    • At risk date: October 2025
    • Length of service: 8½ years (approx.)

    So, if your redundancy pay is being calculated, it should reflect 8 years’ service, not just the time since you became permanent.

    Your employer must treat your service as continuous because there was no break between the fixed-term and permanent contracts.
    This is explicitly covered under Section 218 of the Employment Rights Act 1996 and is reinforced by ACAS and GOV.UK guidance.

    The second section seems AI generated so I would be somewhat wary. As I said it depends on your employment status and the specifics of that, being a "contractor" means nothing. If you were PAYE then apart from a few scenarios, the main one being your contracting was via a third party employer then yes, it would count, however if you were not PAYE then it almost certainly would not apply. What was your employment status?
    london21 said:
    Wonka_2 said:
    Negotiation is possible but depends on your value/cost to the business. 

    Given your previous posts/salary comments I’d not be expecting them to consider doubling their offer (which already seems to be double the requirement)

    Are they paying your notice period as well ? And how long is that ?

    Whilst you can ask for the 4wks per year you need to decide the worth of this vs your other asks e.g inclusion of yrs service pre-contract, redundancy/re-employment support, entitlement to bonus for current year etc etc
    notice period is 3 months will be a payment in lieu of notice and the beenfits and pension will stop from the date they gave like 2 weeks time.

    statutory is around 3k enhanced like 16k but this is 6 years of service altogether over 8 years if the contract and permanent periodi is added together. 
    So regardless of your actual length of service they are already offering you many times what they need to. You have no cards to negotiate with, they hold them all.

    The best thing to do is to get applying for new jobs, get a new job fairly quickly and then the £16k is a nice tax free bonus, with a new job and a new start.

    Thanks for the response, i have started applying.
    In 2016 I got month for each year when role moved to Poland.
    I have been singled out here to will negotiate for a better offer.
    Redundancy is not in the contract I have checked. 
    Yes, it is went in on Wednesday manager and HR were waiting for me by the lift. PILON not currently working, trying to get another role but not sure what the economy and job market is like now considering last quarter.

    I will take it to tribunal because it was predetermined and unfair. I have protective rights such as disability etc. I will request for SAR and email the CEO.

    You might have got a month for each year in a different role at a different employer, but it makes no difference to what you might get this time. You need to take the emotion out of this, just because it has happened quickly does not make it predetermined or unfair. Disability does not mean that they cannot make you redundant, they just have to tick a few more boxes. The SAR will not give you the scoring. 
    london21 said:
    Yes, I am using AI, google and ACAS as this is new only found out on Wednesday. I have been in continuous employment since April 2017 started as a 4 month contractor then became permanent when IR35 started, no break since December 2019.
    Watch out for using AI, it tends to bring in various things related to employment law that is wrong. I am not totally sure which way that impacts your continuous employment for redundancy, others on here will be able to confirm.
    london21 said:
    Sounds good but 16k is not much in reality considering my contribution and how things have unfolded. Even my previous colleagues are all shocked and one has even given me a good lawyer used before.  

    That is not how things work I am the longest serving team member, new manager started last year and has not been supportive. 2 new permanent staffs and 2 fixed contract staffs hired. The decision was made between me and another colleague but the consultation is this week. The decision has been made already. why, if there were two possible candidates for one role, we weren't both put at risk and invited to apply for it. 

    Again, that is emotion rather than rational, £16k is good when the alternative is Statutory at £3k, it can be how things work. The specifics depend on their internal process, but the reality is that either way they want you out, even if they have not done the paperwork wrong at a tribunal you would get less than £16k. 
    will see what they say. worth a try.
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