Statutory redundancy pay is fixed by law, but if your employer is offering an enhanced package or a settlement agreement, you have real room to negotiate. This guide gives you proven tactics and free letter templates to help you get a better deal.
Most employees think the offer on the table is final. It rarely is. You can negotiate: the total financial payout; the wording of your reference; your leaving date (later can mean more time to find a new job, earlier can mean less stress); whether you keep your laptop or phone; announcement wording to colleagues; and the confidentiality terms in a settlement agreement.
Before entering any negotiation, understand what leverage you have. If your employer has not followed a fair process — skipped meaningful consultation, used questionable selection criteria, or failed to consider alternative roles — you have a potential unfair dismissal claim. The cost of defending an Employment Tribunal claim (typically £10,000–£50,000 in legal fees) gives your employer a strong reason to offer a better settlement rather than go to tribunal.
1. Make the first move in writing. A formal letter is harder to dismiss than a conversation. Our templates below give you the right professional tone.
2. Anchor high. Ask for more than you expect to receive. If you want £15,000, open at £20,000. Most settlements land somewhere in the middle of the opening positions.
3. Trade rather than just ask. If they will not move on money, ask for a longer notice period, a better reference, or to keep equipment. Employers often find non-cash concessions easier to give.
If your employer is offering a settlement agreement, getting a solicitor to negotiate on your behalf almost always pays off. Employers must pay your legal fees (typically £250–£500), and a specialist employment solicitor often secures an additional 20–50% on the initial offer. Use our solicitor finder to find one near you who offers a free initial consultation.
If you believe your redundancy is unfair and want to take it further, remember the strict 3-months-less-one-day deadline to start ACAS Early Conciliation from your last day of employment. Do not let negotiation drag past this point without taking formal steps.