Redundancy - getting statutory minimum
Discussion
FMOB said:
Has just been announced about a third of the company and they are only offering the statutory minimum.
Are there any good arguments to persuade an improved offer apart from it just nasty?
Thoughts appreciated.
If the company has 3 employees then theres probably scope for negotiation. If its a large company with an HR department then I highly doubt there will be any ability or appetite to pay anything more than the statutory minimum for a number of reasons.Are there any good arguments to persuade an improved offer apart from it just nasty?
Thoughts appreciated.
Sy1441 said:
If the company has 3 employees then theres probably scope for negotiation. If its a large company with an HR department then I highly doubt there will be any ability or appetite to pay anything more than the statutory minimum for a number of reasons.
That’s been the polar opposite of my experience. In the tech world, it’s the big companies that pay the best redundancy packages.
I know many people from several companies that have received bumper payouts. (In the order of 18 months salary and in some times more).
That said, the package tends to be fairly locked down and non negotiable when it’s gets presented.
I've been made redundant twice and each time got the legal minimum.
Why would any company give you anything but the bare minimum?
Unless they are planning not doing it by the book, the reasons are not valid etc
If the reason is valid and the process is followed then they don't need to
Chin up OP each time it happened to me I went onto bigger and much better things
It grates when you hear of people getting bumper payouts but that must be because the company doesn't want to follow the rules or they want to get rid of someone or it was negotiated into their original contract - tech redundancies are common so often enhanced redundancy will be an attraction for new employees
Why would any company give you anything but the bare minimum?
Unless they are planning not doing it by the book, the reasons are not valid etc
If the reason is valid and the process is followed then they don't need to
Chin up OP each time it happened to me I went onto bigger and much better things
It grates when you hear of people getting bumper payouts but that must be because the company doesn't want to follow the rules or they want to get rid of someone or it was negotiated into their original contract - tech redundancies are common so often enhanced redundancy will be an attraction for new employees
Edited by was8v on Saturday 28th September 09:05
Sy1441 said:
If the company has 3 employees then theres probably scope for negotiation. If its a large company with an HR department then I highly doubt there will be any ability or appetite to pay anything more than the statutory minimum for a number of reasons.
If there’s only 3 employees, a tiny company, there’s a very high chance that there is literally nothing left in the bank to be able to pay more if they’re having to make redundancies. FMOB said:
Has just been announced about a third of the company and they are only offering the statutory minimum.
Are there any good arguments to persuade an improved offer apart from it just nasty?
Thoughts appreciated.
If this involves you, I sympathise it’s never a good situation & can result in a bit of a hunger games situation as folk fight to remain.Are there any good arguments to persuade an improved offer apart from it just nasty?
Thoughts appreciated.
Don’t know organisation or service but Stat isn’t always bad if folk have been there a while. Notice pay of a week per year employed, then a further week’s pay per year as redundancy (latter tax free) csn be a chunky number.
Where it used to cause problems was the recent hires get f’all other than contractual notice & they knew it so just left for other jobs rather than waiting. If there’s a lot in this category & there’s a need for folk to keep working until the end the suggestion of an extra month of so if they stay put is maybe not a bad one, but if the works not there, no point in offering enhanced.
fat80b said:
Sy1441 said:
If the company has 3 employees then theres probably scope for negotiation. If its a large company with an HR department then I highly doubt there will be any ability or appetite to pay anything more than the statutory minimum for a number of reasons.
That’s been the polar opposite of my experience. In the tech world, it’s the big companies that pay the best redundancy packages.
Did once have a very expensive clear out of heavily unionised workers who’s contract was a multiple of statutory.
Often the reason for redundancy affects the payout.
A company that doesn’t have money or work will pay the bare min.
However a co that’s decided to close a product line or move a facility for operational reasons can be more sympathetic to employees affected - potentially to avoid disruption to their other locations.
said:
If they are asking for voluntary redundancy, then a company might offer more, but once its got to compulsory as people say above, why would they?
Redundacy payment of one week's salary per year of service is capped at £700/week.
When I was made redundant many years ago, from a company that was renowned for thinking that employment law didn't apply to them, the minimum was paid but correct procedure not followed. The reasons given for me being chosen for redundancy were also nonsense. I consulted a solicitor & we took the company to an industrial tribunal. The company made a number of offers of increased payment, all of which I refused. The day before the hearing they upped their offer to 10x the original payout & I accepted.
The MD admitted that in the last quarter, in which I had worked for 9 weeks, I was the salesman with the highest sales. He even paid me the commission on a sale where the order came in a week after that quarter ended.
When I was made redundant many years ago, from a company that was renowned for thinking that employment law didn't apply to them, the minimum was paid but correct procedure not followed. The reasons given for me being chosen for redundancy were also nonsense. I consulted a solicitor & we took the company to an industrial tribunal. The company made a number of offers of increased payment, all of which I refused. The day before the hearing they upped their offer to 10x the original payout & I accepted.
The MD admitted that in the last quarter, in which I had worked for 9 weeks, I was the salesman with the highest sales. He even paid me the commission on a sale where the order came in a week after that quarter ended.
MickC said:
Some employers have better redundancy terms written into the contract, and that's one way you'd get more from a compulsory redundancy. Those clauses have been withdrawn in lots of cases now and even public sector is less generous than it used to be. Mostly its been swapped for 'better' pay deals or ditched during T&C 'reforms'.
If they are asking for voluntary redundancy, then a company might offer more, but once its got to compulsory as people say above, why would they?
Don't get me started on the public sector, profligate wasters of our tax money.If they are asking for voluntary redundancy, then a company might offer more, but once its got to compulsory as people say above, why would they?
My brother worked in local government, retired at 66yrs and 6 mths in May this year, the local authority paid him £30k in 'redundancy'!
MustangGT said:
MickC said:
Some employers have better redundancy terms written into the contract, and that's one way you'd get more from a compulsory redundancy. Those clauses have been withdrawn in lots of cases now and even public sector is less generous than it used to be. Mostly its been swapped for 'better' pay deals or ditched during T&C 'reforms'.
If they are asking for voluntary redundancy, then a company might offer more, but once its got to compulsory as people say above, why would they?
Don't get me started on the public sector, profligate wasters of our tax money.If they are asking for voluntary redundancy, then a company might offer more, but once its got to compulsory as people say above, why would they?
My brother worked in local government, retired at 66yrs and 6 mths in May this year, the local authority paid him £30k in 'redundancy'!
My experience is being in a senior position, whilst we did a restructure and being part of the interview process for the staff at risk. This was around 30 staff (it was a single department not the whole company), they were all offered the same packages, however the people who made it difficult managed to negotiate better deals.
The first thing to do would be to ask for a subject access request.
The first thing to do would be to ask for a subject access request.
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