Top 10 tips on negotiating a redundancy package
Being advised that your position is being made redundant can be a harrowing and distressing experience for any employee. Due to the uncertainty as to whether as to how long it will take you to get another similar position it is very important to maximise the redundancy payment that is paid to you by your employer.
The following are some factors to be taken into account:
- Set out your objectives as to what you want the outcome of the redundancy process to be.
- Check your Contract of Employment.
- Check the employer’s redundancy policies and in particular it’s selection procedures for redundancy.
- Take advice as to whether there are any areas where the employer may have breached its own contract/policies i.e. by way of unfair selection of redundancy or indeed if I could be argued that the proposed redundancy is a disguised attempt to move the employee on. This may provide leverage in the redundancy negotiations.
- Do as much research as you can to see if there was a precedent for an enhanced redundancy payment with other employees.
- Take into account any other entitlements which you may have under your contract i.e. bonus, holiday pay, other benefits such as private health insurance, company car etc.
- Always negotiate in a polite and measured but firm fashion.
- Take legal/tax advice in relation to maximising the redundancy payment and ensuring it is paid in the most tax efficient way. An employer will often agree to make a contribution towards professional advice that is required.
For any further advice on employment matters please do not hesitate to contact Brendan Dillon or Conor White on 01 296 0666.