man using a calculator working out redundancy package
How To Tell If Your Redundancy Package Is A Good Deal
August 11, 2020

Being made redundant is a tough situation for anyone. There’s a lot to consider, including whether your redundancy package is a good deal or not.

To help provide a little clarity, we’ve put together this article. Read on to discover how to effectively review your package and ensure that you leave your employer with the best pay and support possible.

Legal pay criteria

Firstly, establish whether the proposed redundancy fully meets all legal requirements. Most employers will adhere to these, but there have been instances where mistakes have been made – both accidentally and deliberately.

A key rule is whether your redundancy pay is in line with the statutory amount. You’ll be entitled to the legal minimum if you have worked for your employer for at least two continuous years. You should receive half a week’s pay for each full year you were under the age of 22, one week’s pay for each full year between the ages of 22 and 40, and one and a half week’s pay for every year after that.

However, you may be entitled to more if your employment contract stipulates it, so make sure to double-check this before agreeing to anything. The company may also have a redundancy policy that may affect your redundancy package.

Other legal rights

Ensure other legal criteria have been adhered to as well – like your notice period and holiday.

For your notice period, the rules are as follows:

Length of service Notice period
1 month-2 years 1 week
2-12 years 1 week for every year of employment
12 years+ 12 weeks

 

Like redundancy pay, your contract might specify a longer notice period. Always ask your employer if you’re not sure.

In terms of holiday, your employer has to pay you for any days remaining or allow you to take them. You’re also entitled to time off to look for work (or undergo training to help you find another job) if you’ve been in this employment for at least two years – your individual circumstances will dictate how long you can take. However, it is important to note that the legal maximum your employer has to pay you for this time is 40% of your week’s pay.

Negotiation

If the business has met all their legal obligations, it’s then worth looking into whether you could negotiate a better redundancy package. it may be that you deserve more pay than has been offered – whether because of the value you’ve provided during your time there, your performance, or the length of your service.

Or it might be that your package isn’t entirely fair to begin with. For instance, parts of it may have been based on sales figures you’ve achieved. But if it doesn’t take into account a period of leave or time off for training, you could actually call for more from your package.

Plus, the economic climate has to be taken into account. If the job market is likely to be difficult, you could request that your employer offers more to help you financially.

Aside from money, you could also negotiate for the continued use of benefits, like private medical insurance (for a reasonable amount of time), or equipment such as a laptop or a car.

Finally, see if your employer could offer anything to help with your future career. They could provide a training course or outplacement services, for example. Given the current circumstances, and especially if you’ve been in the role for a long time, this is incredibly valuable.

Outplacement Services offer a series of webinars that take you through the job search, as well as the latest in interview techniques. We also provide mindset and wellbeing support and 1-2-1 consultancies so that you can feel emotionally – and practically – prepared to seek your new role. With us, you’ll be able to more smoothly transition from redundancy to your new career move. To find out more, click here.

If you’re an employer and want to know more about how Outplacement Services can support your outgoing employees, visit our website.

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CONTACT

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For any help or to arrange a consultation, please phone, email or fill in the form below

0203 805 7020

hello@outplacement.services

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