How to negotiate a redundancy package

Businesses make people redundant (or laid off) for a variety of reasons. The fault may be the employer's for making bad decisions, an employee for not performing in the job satisfactorily or market conditions. Whatever the reason for your redundancy, you may receive a better severance package by adopting some negotiating techniques and gaining knowledge about employment procedures.

Start the redundancy negotiations in a friendly manner, particularly if you have worked for the manager or director for a long time. Ask the manager to look into other possible employment options within the company. Show that you are willing to retrain. Alternatively, offer to work part time, if you can afford it, or to have your pay frozen for a period of time. Make the employer consider all options before letting you go.

Get your proposed redundancy package in writing, if continued employment is off of the agenda. After the meeting, look into your legal rights and the company's legal obligations. Examine your employment contract in close detail. See if you can find a loophole or an element of unfairness in their procedures. Point any failure of procedure out to the employer. Employers will not want to go to a tribunal and may offer more if you find a procedural error. Seek legal advice if you are unsure.

Think of reasons why you deserve a good or better severance package. Examine previous redundancy payments paid to other employees. Negotiate based on precedent.

Look into your long-term job prospects. Ask the employer to contribute to your retraining and to pay for a professional to assist you in your new job search. Good employers will want to help you find a new job and may offer financial support.

Ask for your job benefits, such as medical insurance and paid mobile phone bills, to continue for a period of time. Review any share options that you may have with the company. Negotiate for permission to cash in the full amount of your share options early. Also, ask to keep laptops and mobile phones as part of the package. Giving you these items may not cost the employer much but will add more value to your severance package.


Seek added benefits that do not directly cost the employer more money.

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About the Author

Nigel Ward has been writing for internet sites since June 2009. His articles have appeared in "Fitness Uncovered," "Earnest Parenting," and "Age Concern." A qualified TESOL and primary school teacher, he has a Post Graduate Certificate in education from St Martin's College, Carlisle and a BA (Hons) Degree in applied theology from Manchester University.

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