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Redundancy - how much should I gun for/expect - city worker

(19 Posts)
lisalisa Wed 29-Jun-05 11:43:30

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koalabear Wed 29-Jun-05 11:47:53

one weeks pay for every year you have been with them is the legal requirement (I think)

work out what you want, whether it's realistic, and ask for that

typically, i've seen between 3 to 6 months pay as a typical redundancy package, unless they are making a lot of redundancies as part of a strategy, and then its about a year's worth

soapbox Wed 29-Jun-05 11:49:08

How long have you been there?

Unless very short or very long time, I would say 6 months would be a reasonable settlement.

disillusionedcityworker Wed 29-Jun-05 11:49:51

I'm in a similar situation at the moment.

At my firm the going rate is one week's notice per year of employment - as "gardening leave". Then one month's salary per year of employment as a redundancy settlement. They also pay for outplacement consultancy.

HTH.

morningpaper Wed 29-Jun-05 11:52:21

Why would they make you redundant? They then won't be able to fill your position with someone else.

soapbox Wed 29-Jun-05 11:55:54

MP - lots of city firms used the concept of a 'bumped redundancy' where you make a person redundant in one area and use fill their vacancy with a person in an area where redundancies are planned. Perfectly legal to do so and helps firms use voluntary rather than compulsory redundancy to manage staffing numbers.

Twiglett Wed 29-Jun-05 12:13:30

one weeks pay per year is at statutory levels so is only a couple of hundred .. I'd go for at your actual wage level

plus your notice paid in full

plus 2 weeks at full pay consultancy re redundancy

lisalisa Wed 29-Jun-05 12:21:31

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Twiglett Wed 29-Jun-05 12:25:36

I meant that all they have to give you is the statutory rate which is the statutory weekly wage (not your actual weekly wage) and at a minimum I would ask for a week at your full wage per year of service .. although a month per year of service would be better

plus don't forget that you get your notice period on top of that

plus any holiday pay owing

plus there is a 'best practice' thing where when redundancies loom they are supposed to give you a 2 week period (consulting you about redundancy and identifying different roles you could take) so I think that 2 weeks should be on top (ie don't work it just take the money)

hth .. I haven't worked since 2002 when I negotiated a voluntary redundancy

lisalisa Wed 29-Jun-05 12:51:20

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Hayls Wed 29-Jun-05 12:55:02

I was made redundant recently and got a pitiful settlement. I had been there for 2 years and got 2 weeks wages. I had been back from maternity leave for 2 months and gone down to 15 hours per week and the 2 weeks pay was based on this rather than any hours I had done prior to that. Total bummer escpecially as I@m still unemployed!

Twiglett Wed 29-Jun-05 13:00:34

personally I approached a partner who I felt closest to (I was board level but didn't have shares in company) and broached the subject in terms of possibility then asked them to come up with a decent offer which I then negotiated from

I am surprised at people who get really good deals TBH I don't think they really are that common

I ended up with 3 months notice + 7 x weeks at my full pay + 7 x weeks at statutory pay (they cocked up) + 2 weeks consultancy pay at full pay (oh and then I made sure I claimed back tax that had been overpaid through PAYE)

I'm a SAHM .. fortunate enough to be able to make it work on DH's salary alone (with quite a bit of belt tightening of course)

Kaz33 Wed 29-Jun-05 13:26:26

I negotiated my voluntary redundancy package last year from a city law firm - also commercial property !! I got about 6 and a half months gross. My situation was improved by the fact that I had a potential sexual discrimination claim - work changed, disappeared after return from maternity leave.

If you ever need to do some outsourcing !!

jampots Wed 29-Jun-05 13:42:06

lisalisa - something similar happened to my friend - please CAT me and I can expand!

lisalisa Wed 29-Jun-05 14:55:15

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Kaz33 Wed 29-Jun-05 15:12:13

Lisalisa - have just CATed you, happy to talk on the phone or by email.

To answer you I had a good friend who acted as an intermediary, he basically set the whole idea of redundancy up. They accepted the idea in principle, suggested a package, I countered with a more attractive (to me) package, they accepted and I was out within the week.

Do you have your own clients? I would imagine that the compromise agreement they would make you sign would have something to say about that.

lisalisa Wed 29-Jun-05 16:24:43

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Kaz33 Wed 29-Jun-05 16:38:50

Not an employment lawyer but certainly that would be something you would need to check.

Sounds exciting - setting up on your own

fsmail Sun 03-Jul-05 23:01:11

Compromise agreements do not necessarily mention that you cannot approach clients although if your contract does you may have problems. Ask them to be the legal fee to get it checked as part of the agreement then they can reclaim the VAT.

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