How to negotiate a better redundancy package


If you are being made redundant and you’re wondering how to negotiate a better redundancy package, then you need to remember one golden rule. A lot of redundancies are carried out incorrectly by management, and if you can identify the errors, then that will be the key to negotiating a better redundancy package. You might want to keep this under your hat, because if everyone starts negotiating better redundancy packages for themselves then you might find that management are a bit more reticent to start agreeing to your terms.


Unfortunately, a lot of the redundancy processes we see today are in fact fake or sham redundancies, whereby your employer decides in advance who they want to select, and then builds a seemingly objective redundancy selection process which happens to select you (when the whole time it was a foregone conclusion). In this country it is supposed to be the role itself which is identified as being redundant first, and then the employee is identified after, but all too often managers will select those people who, perhaps for personal reasons, they would like to see made redundant.


A lot of redundancy packages will take into account the element of doubt about the process, and will offer an enhanced amount, over and above the statutory minimum. So if you employer is offering you a big redundancy package then it will obviously be harder to negotiate a better one, because even if successful in an employment tribunal claim, you might not get more than say 6 months’ money, or even less if you find another job quickly (tribunals only award compensation in redundancy cases for the amount of time actually out of a job).


Once you’ve identified the weaknesses in your redundancy process, then you can go about leveraging them to negotiate a better package. This should be done on a ‘without prejudice’ basis, which means a special, off the record way of writing or speaking to your employer. At the same time, you should be running an ‘open’ position whereby you attend all the consultations and go through the appeals process, flagging up where you think they have gone wrong.


Ask for disclosure of documents, especially scoring criteria. Demand to know who rated you against the criteria and why, and ask to see any evidence which the managers referred to, such as absence records or disciplinary records. You should also ask to see the scores of the other employees in your redundancy pool. By this stage your employer may start to get nervous and offer you an increased package.


It goes without saying that if you instruct lawyers to represent you then you will invariably have a higher chance at negotiating a better redundancy package. Most people are scared off by the prospect of a fat legal bill for no increase, but if you are luck you could get your case accepted by employment lawyers who operate a no-win no-fee structure. We at Settlement Agreements Ltd work only on a no-win no-fee structure, but as a result we can only take the best cases which we think we can get negotiate a better package for.


Given that this may be the last chance you have to earn some decent money before a potentially lean spell on the jobs market, the least you ought to do is to speak to us to see whether we might be able to take your case. This costs nothing and can be arranged by calling us on 0800 533 5134,  020 7717 5259 or by requesting a call back from one of our experienced solicitors. Good luck!



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