How to negotiate the best redundancy package

Discovering that you’re going to be made redundant can be extremely stressful and frightening, especially if you have a family to support. Paying everyday bills can be difficult enough, even when you’re in employment. Indeed, according to payday loan broker CashLady, paying bills is one of the top three reasons why people apply for high cost short-term credit.

Losing your job through no fault of your own is also frustrating. Although it can be tempting to take whatever redundancy package you are offered, so that you can walk away and move on, this may mean that you’re missing out on a better deal.

Redundancy packages are not set in stone

Many people mistakenly believe that they have no choice but to accept the offer that their employer has put on the table. This couldn’t be further from the truth. In fact, the majority of the time, it could be possible to make some changes. Jobsite.co.uk gives a good evaluation of your chances to ask for a better deal. 

When you are first informed that you are going to be made redundant, you’re probably going to be upset and shocked. Even if you suspected that this was the way things were going, hearing your suspicions confirmed can cause even the coolest of people to find their head spinning. This is why it’s important not to make any hasty decisions.

Ask for your redundancy package in writing

Agreeing to what you’re being offered right there and then can often be a mistake. Ask your employer to write down the details of your redundancy package and tell them that you will need some time to look over it.

Remove yourself from the situation and give yourself a little bit of extra time to think about what kind of redundancy package you think is reasonable.

Consider the ‘whys’

If you just go in asking for more money, you’re probably not going to get it.

Think about why you are asking for more money. Try and see it from your employer’s perspective too; why would they increase what they are offering you?

For example, you may ask for ‘x’ amount more money so that you can go on a training course to help you find another job. Consider what types of roles you will be looking for and what training could help you to get them. Doing your research and being prepared is half of the battle.

Negotiations should start amicably

Finding out that you are going to lose your job is tough. Many employers will understand this and be sympathetic to how you’re feeling.

Once you’ve come up with some suggestions about your redundancy package, discuss these with your employer in a friendly and professional manner. A little goodwill from your employer can go a long way.

Know your rights

It is worth the time and effort to know what you are legally entitled to regarding redundancy packages.

This way, you can ensure that your employer is doing what s/he is supposed to be doing. The vast majority of employers will want to avoid legal action being taken against them. Again, as in any negotiation, it is crucial to come prepared.

Most importantly, remember that you don’t have to immediately accept the redundancy package your employer is offering you. Take some time and consider your needs.