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.

The highest award legally you can get for constructive dismissal without discrimination is 86k or 52 weeks salary or which is lower. If you can prove discrimination it is open ended. I would be looking at that

@Queenonfleek and @Maxley - Thank you! That is the information I was looking for!

Fist discussion with lawyer tomorrow and so I wanted a benchmark to decide on the quality of his advice as when deciding if he is worth continuing with.

Well, you clearly have an idea of the amount you are prepared to walk for. Are you just trying to find out if MNers think 'your reasonable' is theirs?

Depends on things like whether your organisation would be averse to the bad publicity of a potential Unfair Dismissal tribunal or not, especially where discrimination of any sort us involved. It also depends on whether you are realistic in being able to fit the job profile or not.

You have your figure in mind. I would just see what they offer and, if it's not enough, tell them your lawyer believes you have a case for unfair dismissal (presumably on the grounds of age discrimination?) and see if they'll reconsider. If not satisfactory then initiate the grievance procedure. If necessary afterwards make a claim for unfair dismissal.

Companies will often settle out of court if on unsure ground and to avoid work and time involved in proceedings. Be prepared to go all the way though and, in your position, I would represent myself at a tribunal. I don't know why but this seems to be looked on more favourably than when claimants are lawyered up.

Good luck.

The glory days of international banks etc paying finance workers a month per year of service as a standard package are gone. 1-2 weeks actual salary per year if service, plus notice, is more usual. If you have a possible claim obviously then they will be looking at an amount which makes it worth your while to go away, without incurring costs and risks of litigation. What is your notice period, and how long realistically do you think it is going to take you to get another job? Have you spoken to agents? Are they including outplacement counselling in the package? Assuming you are fairly employable, I would start asking for a year (inc notice if they are paying you in lieu) and be prepared to drop to 9 months pay equivalent to your total current package. Clearly there is a possible age discrimination angle you will need to explore to get that though.

I don't understand how this is legal op. They are basically firing you.

If there is no head count reduction, and your position remains, and they are recruiting new people this is dismissal.

My company has done similar, but with poor performers, very poor performers, and the redundancy is voluntary.

You're saying you're a good employee, and they aren't reducing hc, your position remains, they are simply terminating your employment, firing you. It doesn't make sense why they would wish to do this.

The glory days of international banks etc paying finance workers a month per year of service as a standard package are gone.

Ha ha . Seen much more than that and very recently.

A years salary as someone mentioned above is the starting point.

Op, to be clear they can't make you redundant and fill the position, there is a time limit, I think it's six months they have to not have the role in uk law, it could be a year.

Is this voluntary redundancy? Because if it's voluntary they can recruit again. But for voluntary it's your decision on whether uou accept it. Of course if you don't they could start to performance manage you out.

So the role is changing going forward and they are arguing you don’t have the skills to do it?

Have they offered retraining or a trial period?

And you say you have evaluations in writing praising you for the skills they say you don’t have for the role?

In which case I would be threatening them with unfair dismissal, sex and age discrimination claims.

Your compensation would be your actual loss until date of tribunal, plus reasonable future losses plus injury to feelings. You have a duty to mitigate your losses by applying for other jobs.

I think I’d be asking for a year’s money under a settlement unless you think it will take you a lot longer to find a job or you’ll have to take one at a severely reduced level of salary? The money should include all benefits including company pension contributions, and I would probably ask for a lump sum for outplacement of your choice and maybe some retraining or a course you’re interested in?

My DH has been in similar circs and negotiated six months salary.

Sorry..posted too soon. We were happy with that as it was a v toxic atmosphere that was beginning to affect his health. Staying longer to negotiate fir more just didn’t seem worth it.

This is similar to what I am going through now, question what is SAR? also would love to final outcome in this case?

I’d say 6-12 months salary depending on how long you’ve been there, how well regarded you actually are and how clear cut the unfair dismissal case is.

Thank you 30 years in my case

Something like this happened to me - basically it was clear some of my role was redundant but they did not follow proper proceedures and in fact tried to give the parts of my job that were still needed to someone else and just left me with no work - (I assume hoping I would resign). I went off sick and worked on a settlement agreement in return for not putting in a constructive dismissal claim

I got a lump sum equivilent to 9 months pay, three months pay in lieu of notice and 8 week course of career counselling fully paid for.

I would have your lawyer argue the case, including a without prejudice offer to walk for 12 months pay. Settle for anything over 6 months. Good luck!

I would start, as pp posters have said at a year's salary, plus gardening leave for notice period.

Thank you, how long did your grievance hearing and settlement offer take? I’ve already had some redundancy consultations but paused whilst I’ve raised this formal grievance. Also do I need to consult with a lawyer now before the internal grievance hearing?

Do I need a lawyer at this point before the internal grievance hearing?

@GreatBear2 about 4 months in all. I consulted a lawyer but mainly used my union.