How to Negotiate Redundancy Pay

Redundancy pay can help soften the blow of being let go.

Redundancy pay is basically a term that refers to the severance package you receive from your company when you are let go. The term is commonly used in the United Kingdom. If you are fired as a result of disciplinary action because of your own negligence or wrongdoing, then you are not awarded redundancy pay. This pay is for people let go from a company because the company needs fewer employees for one reason or another and not because they did anything wrong. The amount of redundancy pay you receive may depend on your ability to negotiate.

Instructions

1. Research whether you are eligible for redundancy pay before you try to negotiate. You must have been let go because the company now needs fewer employees and not terminated because of something you did. You must also be under your company's retirement age and have worked for the company for at least two years past the age of 18.

2. Ask that your redundancy pay and the terms be given in writing before you start negotiating. This will give you a chance to look over the pay and the terms and decide what you hope to achieve through the negotiation.

3. Submit a written request to negotiate the terms of your redundancy pay. Do this as soon as possible.

4. Turn down your employer's first offer in most cases. The first offer probably isn't the best, and if you stay persistent and make it clear that you deserve more, than you may be able to receive a higher redundancy pay.

5. Obtain benefits other than money during the negotiations if possible. This is especially important if your employer doesn't seem willing to increase your redundancy pay. You may be able to buy your company car from your employer at a reduced rate, receive extended health insurance coverage or be given the laptop and cellphone you used for your job. Career counseling, outplacement support and a reference are also things your employer can provide you with that can help you find alternative employment.

6. Ask for the terms of your redundancy pay, including money, benefits and other terms in writing. This will help protect you if your employer cannot or will not deliver.

References

• Times Online: How to Negotiate a Good Redundancy Package
• Entrepreneur: Working Out Your Redundancy Package