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 negotiating, check whether there may be grounds for a claim, including the consultation, selection and consideration of suitable alternatives. Eligibility, evidence, limitation periods and potential outcomes depend on the facts; there is no guaranteed settlement amount or typical defence cost.
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.
Independent advice is required for a valid statutory settlement agreement waiving particular claims. Ask about any employer contribution and the adviser's fees; a better offer or free consultation is not guaranteed. The Town and Availability directory currently has no solicitor listings.
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.