Redundancy Settlement

[reasonablesettlement]

I work for an international organization in the finance sector. I am being made redundant following a reorg and my profile does not meet the needs of the future org (this is very arguable). My post will remain, but evaluation apparently shows that I do not meet the future criteria even though I have performed well and have held more senior posts in previous organisations that do cover the criteria. They don't want me (and 3 other colleagues). We are all over 50. I have been there for 7 years and earn £80K.

What kind of figure should I aim to be walking away with considering that the headcount position is not going and the evaluation is subjective and can be countered by prior written appraisals and thanks for my skilled work? I have a lawyer but would appreciate any insight / wisdom.

Statutory redundancy calculator here: www.gov.uk/calculate-your-redundancy-pay

Your organisation may also pay enhanced terms. You’ll get a document confirming your redundancy package from your employer which would also include statutory, benefits (PILOB) and notice (PILON).

I’m a little surprised that you’re not aware of these things working within finance.

I would expect to receive the higher of what is in my contract or Statutory redundancy pay. Or are you expecting to receive some sort of enhanced deal? If so, why?

Whatever it says in your contract. Usually a week salary for every year you have been there capped at the level for your age.

she works in finance, not HR. Why should she know about these things?

1.5 weeks’ wages multiplied by the number of years you worked there is the statutory minimum, as you are over 40

Which works out about £16110 (there are 52.14 weeks in a year)

I think what OP is gettng at is that she does not see the redundancy as justified and what would be considered a reasonable sum to accept rather than pursue an unfair dismissal case...is that what you are saying OP. If so it is a red herring because you would either contest the redundancy or not and the amount they are willing to pay you is not relevant

Basically, they are reducing their head count with the org, then repositioning everyone into that roles and who is not positioned leaves.

You're not arguing your capable of the role, you're arguing your more capable than who is getting it. That's a very difficult thing to prove.

You are entitled to approx seven weeks pay, whether they are willing to enhance it, is subject to negotiation but they should let you know the terms of your separation. It may be more favourable.

Are you in a union? I would contact my union rep to see what they had to stay. My understanding was that they were making the post redundant, so if the post remains then they are sacking you, not making you redundant.

@DontTouchTheMoustache

"hmm she works in finance, not HR. Why should she know about these things?"
To work in finance and be on £80k per year suggests she is professionally qualified. For most finance qualifications you will have studied Company Law for at least one year if not more.

If you threatened unfair dismissal with age and maybe sex discrimination, you can add injury to feelings and loss if earnings, often around 12 months. You have to show you would struggle to get another job, that you have been looking for one, online and maybe through an agent. Raise a grievance and do a subject access to request so you can see all info about you. This could reveal them singling you out rather than fairly selecting you for redundancy. SARs are a pain in the bum, so a good bargaining chip, if they make you a decent offer you can drop your request.

My situation was different but also arguable and I settled about 5 months' pay (5 years in the job and under 40).

I suppose you'll need to skillfully hint at the fact that the circumstances are arguable but you're willing to leave with whatever package. As you're over 40 with 7 years in the job, the basic redundancy pay would be 10.5 weeks worth? (I'm not in HR either). I'd expect a much enhanced financial package and very strong references as part of the settlement.

OK.

I know what they have offered me,.
I know what the law says. There is no reduction in headcount.

They are getting rid of some people to bring in others. So they can do that, but I want them to pay for that luxury so that my future is less uncertain because I am worried that my age will be against me in finding a new and comparable position. I have a lawyer who says I have an unfair dismissal case. I will walk for a reasonable figure.

They have a clear redundancy criteria as she doesn’t meet the skills of the job. Whether this is engineered or not they have followed process and thus there is no claim for unfair dismissal here

I am not arguing capability over anyone else because those future individuals are not known to me (or them I suppose...). What I am arguing is that the evaluation was biased to meet a forgone conclusion; the evaluation is a smoke screen, inaccurate and unfair.

I am assuming you know what your redundancy payout will be but think you are being discriminated against and want a settlement agreement?

If so it will all depend on the evidence you have of blatant discrimination, how high profile your company is and could you cause damage to the brand if your story got out in the mainstream media and what disadvantage you are now at entering the workplace at your age in your profession.

I have earlier written recommendations (last year and earlier this year for example)from within the organization what specifically mention my skills on the criteria that I have been evaluated as failing in.

I have earlier written recommendations (last year and earlier this year for example)from within the organization what specifically mention my skills on the criteria that I have been evaluated as failing in.

Sounds like a potential for a very fat payout to me. Unless you'd rather stay and want to argue to stay on.

No, I do not want to stay - certainly not after this treatment.
What I would really like to know is what is the maximum I should be aiming for based on what others have managed to negotiate.

AFAIK, they cannot make someone redundant and then fill the role with someone else within a set period of time. So I'd be talking to an employment solicitor (quite a few give half an hour's free advice) about where you stand and what sort of enhanced package you'd be reasonable to request if you chose not to go down the litigation route.

The recommendations are from very senior managers (think regional and global positions) and are therefore more than nice words. They are all recommendations that I should be considered for promotion.

None of us are going to be able to advise you better than your lawyer who has access to the full details of your case.

However when I was in a similar situation my financial services company did offer an enhanced redundancy which was equivalent to about a months pay for every year worked. There was no discrimination element but they wanted to employ cheaper people to do the same role.

I think you've confused people by asking about redundancy compensation rather than settlement in exchange for not claiming unfair dismissal, the 2 aren't strictly related.

The cap on unfair dismissal compensation is c.£80k, around a years salary for you, so I'd be basing negotiations on that - perhaps ultimately aiming for something like 7 months salary (plus pay in lieu of notice and an agreed reference), but probably starting a bit higher to ultimately negotiate down a bit. Can the solicitor who advised you on the unfair dismissal case not also give you some advice on negotiating a settlement? I know they'll charge but it would be money well spent to make sure you get a good deal IMO. Your employer should reimburse reasonable legal costs if you end up signing a compromise/settlement agreement...

I wouldnt have thought Mumsnet would be the best place to ask. What does your lawyer say ? A forum dealing with finances etc may be a better place to ask ?

What is your lawyer advising about the payout?