First day back and told my role is being made redundant need advice!

[Lozza70]

So this morning was called into a meeting and told my role is being made redundant. I’ve done thirty five years with this company, all my working life, and need some guidance on my settlement.

Anyone know what questions I should be asking? The settlement seems generous but I’m now in my mid fifties is it worth pushing for more? I’ll obviously be looking for a new job but know the job market is not brilliant right now so it could take some time.

Trying to look at this as a positive but in a bit of shock at the moment.

What is your entitlement under your contract of employment?

I'm sorry, that must have been a huge shock. Do you belong to a union? They should be able to support you if so. Failing that, people usually recommend calling ACAS, which I think is free, or if you have the money, or have cover for legal costs in your home insurance or as a perk of your bank account, use that to get some advice from a solicitor. Good luck!

Great way to start the new year- Impeccable timing from your managers.

Have they explained to you how the payment has been worked out,? Organisations in the public sector tend to use formulas eg 3 or 4 weeks pay per year of service with a cap at maximum 2 years salary

Must have been a shock.

Redundancy offers are rarely negotiable as they are contractual.

If you have enhanced redundancy with your company, be very glad you do. Take a look at the statutory and you'll realise how bad it can be.

Companies will often offer some support in finding new roles, take them up on anything they are offering.

Figure out how long you can comfortably be out of work and get a plan in place. Nothing wrong with taking a break to reset - but you have to be mindful of any gaps in NI contributions if you're reliant on a state pension.

That's awful. This is why I wouldn't work for the same company for 35 years. There's no loyalty anymore.
Are you in an union? If so talk to them or seek advice from CAB.

Unlikely you can negotiate the redundancy pay as it’s usually a contractually calculated amount.

Do you have opportunity to apply for any other positions if it’s a restructure?

You won’t get more and if it seems generous it probably is the minimum they have to give isn’t huge. There is a calculator on the government website. Ask if they’ll be offering any training or job hunting courses. Also ask if there are any in-company roles you may be suited to.

it’s scary at the time, I’ve been made redundant twice and both times it has resulted in a positive move.

you will be entitled to legal advice (the firm will have to pay for this). Suggest you also ask for things like outplacement support.

This has just happened to a friend. 21 years. Update your linked in and remove your degree dates. Don’t go too far back with dates although being at one company I would perhaps use this opportunity to put succinctly the roles you have had. Speak to competitors too to see if any openings. Good luck

thats only for settlement agreements. Not for redundancy

Ask if they are offering an enhanced package or any alternative roles.

What have you been offered and how has it been explained to you/broken down for you?

without knowing this it’s impossible to say whether it’s generous and you should snap it up or whether there might be scope to push for more and what those elements might be

What pension do you have as I believe with redundancy some pensions can be used if the person is aged 55 or above.

Is it just your role that is being made redundant in the organisation? or are there more jobs going?

Usually depending on the number of people being made redundant there is a need for a consultation period.

Have they told you about any other roles you could apply for within the organisation?

What reason were you given for the redundancy? (to make sure you have not been chosen because of your age and seniority...).

I would have a chat with ACAS or Citizen Advice so they can have a look at what you are being offered and help you think about all the questions you should ask about the process.

Have you been offered a settlement agreement or redundancy? If it's an SA these are normally higher than a redundancy package and can definitely be negotiated. You could say "I will sign it if you offer me xx". Redundancy is what it is unfortunately.

First off, do the sums before thinking of this as a bad thing. Contracts from years ago tended to be way more generous in terms of redundancy.

If you are likely to get a new job reasonably quickly, decent payoff could be really helpful.

And, as it is a settlement agreement you can negotiate. Ask for help with your CV, interview training, funding for any training you might need to do etc. I know someone who got funding to train as a yoga teacher as part of a SA.

Congrats (or maybe commiserations if it’s not what you want).

Where I work, they make up your pension to 60 if you’re 55 or over. Not sure if that’s just where I am though.

Unless it is a small company there should be a consultation. Is yours the only role at risk, what is their rationale, are there any suitable vacancies you could be offered, would they provide any outplacement support or training, would you be expected to work notice?

There is a calculator online to calculate your statutory redundancy and you will be able to then see how much they have offered as enhanced redundancy over that. You can negotiate more if they are willing - I was due X amount of years - they only go in full years so say it was 14 years and I had worked 14 years 10 months - I asked for them to round it up to the 15 years and they did.

They also included a re training fee - for me that was paid directly to me for a friend (diff company) it was paid to the training provider.

You are also able to have the contract checked over by a solicitor at the companies expense.

Get your CV updated - and appealing and upload it to one of the job sites that offer free feedback on them.

You definitely need advice as there is not enough detail. I'm sure its different if you're over 55. They have to make up your pension or something? Or you may be able to claim your full pension without being penalised.

Sadly they don't unless you are being retired early in Civil Service or similar.

As well as the money side of things, find out if they are offering any other enhancements such as some sessions with a career coach or a CV writer.
When DH lost his job, due to the way tax was calculated, he basically got 6 months' net pay. We worked ok the basis that, for the first three months he could be picky about jobs, for the next three months he would broaden his horizons to parallel or less senior positions and, after that, it would be a matter of applying for anything. We were in the position where my salary could cover our outgoings in we cancelled all discretionary spending so had that comfort which many don't have.
It worked out well for DH in the end. He got a job during month 4, was promoted after 6 months and again a couple of years later and works with a really nice team. Whilst it is easy to say that with hindsight, it was a nightmare at the time as it came completely out of the blue. I found DH went through something similar to the seven stages of grief as first there was shock, then denial, then anger and then we gradually moved on. There was only so much support I could give him so I kept sending him to the pub to meet up with friends!

Good luck Lozza. What a shock. It is on my mind today as it is my first day back after Xmas and just found out about a few redundancies. I'm half expecting it myself as not sure how critical my role is. I'm self-employed though so won't get a payout. Approaching 60 too so finding something else might be hard. I feel for you but mid 55s is still young. It might be positive long term. I will keep my fingers crossed for you.

Thanks for all your responses. I’ve had the detail now and gone through it. It may be a good thing, though if I can get another job…..

It’s a settlement and looking at the detail they are offering a bit more than the number of weeks at enhanced. So that is good.

I do have support with CV creation, career coach etc. confirmed now.

Think I’m still in shock though and lots popping into my head about pensions, tax implications, supporting with my side of the family finances etc as I would have originally planned paying in at similar level for at least 10 more years. Trying to keep focussed on the positives.

You need an employment lawyer who specialises in severance payments. Your company might be obliged to pay for one so check with your HR. If not, get one anyway, it will be worth it.