So, you’ve just heard the dreaded ‘R’ word at work, and things are feeling pretty uncertain. Whilst it can feel like the ground has shifted beneath you, that doesn’t mean you don’t have any control. The good news is, in many cases you can negotiate certain aspects of your redundancy package. You might be surprised with the amount of leverage you really have, especially if you’ve been with your company for a while.
Whether your employer is open to that discussion will depend on your situation, but understanding what might be possible (and how to go about it) can make a big difference to how you move forwards. This stuff is confusing (and sometimes deliberately made that way). So, here’s what you actually need to know.
First thing’s first: know your rights!
Before anything else, it’s worth making sure the redundancy process is both fair and legitimate. All UK employers (big or small) have a legal obligation to follow proper process, no exception. That includes showing that the decision to make your role redundant is based on valid business reasons.
It’s okay to raise concerns if you feel something isn’t quite right, or that you’ve been selected unfairly. This could be through your company’s HR process, a trade union or by independent advice. But assuming the redundancy is valid, there’s often still room to have a conversation about the terms.
What parts of redundancy can I actually negotiate?
Here are a few things which might be up for discussion:
The amount of redundancy pay.
Statutory redundancy pay is fixed by law, based on your age, length of service, and weekly earnings (up to a capped amount), but many employers can and do go beyond this.
You might be able to negotiate further based on different factors like whether others have been paid more or the length of your service. (We’ll talk through different factors affecting your leverage in more detail a little later!)
Your notice period.
You can ask to leave sooner, stay longer or to be paid in lieu (known as PILON). Garden leave is also a possibility, meaning you can work your notice from home.
Holiday, bonuses, and benefits.
Any unused holiday should be paid out, but if you’re close to earning a bonus or commission it’s worth raising this too.
You can also ask for other benefits (for example, pension) to be continued until your final working day (or negotiate for extensions beyond that!).
Support for your next step.
Some companies offer outplacement support too, like helping with your CV or career transition coaching. If it’s not mentioned, it’s worth asking.
Extras that you might not have considered.
A written reference, being allowed to keep your work laptop or phone, these can all be a part of the conversation if you need them.
Another point to consider (especially in supporting your next steps), is relaxing, or waiving things like non-compete clauses to ease your new job search.
What leverage do I have?
You might well have more power than you think, so make sure you understand your value. Some factors to consider might be:
- Long service – If you’ve been with the company for years this will often count in your favour.
- Inconsistencies – If other colleagues have received better terms, you can point this out.
- Timing – Employers may want to wrap things up quickly, especially in large redundancies.
- Legal risks – If the process hasn’t been handled very well, your employer might be willing to offer more to avoid a potential claim.
How to start these conversations:
A negotiation around redundancy can feel daunting, but it doesn’t have to be confrontational. In fact, many employers will be expecting these conversations and will be willing to talk, especially if you’re a valued team member.
If you’re worried about starting, give some of these conversation prompts a go:
- “Thanks for outlining the redundancy terms. I’d really appreciate the chance to talk through a few things; would that be possible?”
- “Given my time with the company and my contributions over the years, I was wondering if there’s any flexibility in the package?”
- “Are enhanced redundancy terms something that’s been considered, or is there room to explore that?”
Wrapping up: Know your worth
Just remember to stay calm and be professional. You’re not being awkward or ungrateful for asking questions, you’re just doing what’s smart, and what your future self will thank you for! Most importantly, you deserve to walk away feeling respected and informed.
