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Who Decides the sum of the package for a voluntary redundancy ?

16 replies

shortcircuit · 20/01/2009 23:09

is it the manager or the HR department ?

Am thinking of questioning mine & am wondering who will make the decision.

Is it only considered a redundancy if the sum is tax free & would you have a period in lieu of notice for a redundancy ?

This & any other info would be great

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HSMM · 21/01/2009 08:46

www.direct.gov.uk/en/Diol1/DoItOnline/DG_4017972

This will calculate your statutory amount. If your company pay you anything over and above this (they often do), then you are lucky. They have a limit on how much they can pay you tax free.

Talk to HR about it.

flowerybeanbag · 21/01/2009 09:17

Voluntary redundancies are normally offered prior to (or to avoid) compulsory redundancies. When offering this to employees, the amount to be offered will have been decided probably by senior management taking advice from HR and will depend to an extent on budget available. Some employers have a redundancy policy which spells out what a voluntary package will be.

Have you volunteered for redundancy? Why are you thinking of questioning it? If they are offering voluntary redundancy on the basis of x package it's normally either take that offer up or leave it and risk compulsory redundancy which is likely to be for less pay. Do you think yours hasn't been calculated right or something? Presumably the offer is the same for everyone?

See here about selection for redundancy. Asking for volunteers is one way, but if they ask for volunteers, they don't have to accept everyone or anyone who does volunteer, so be careful if you want to ask for the package to be increased.

flowerybeanbag · 21/01/2009 09:17

Oh and in terms of tax, redundancy payment are usually tax free up to £30k.

shortcircuit · 21/01/2009 14:37

thanks - I'm in a funny situation where I've been off sick for a long time due to problems at work before I went on maternity leave. Have gone the grievance route which has resulted in specific details about my return to work.

Having discussed this with my manager & considered whether a fresh start (ie leave the company) is the way forward.

I've been presented with some verbal/handwritten details, offering something. It's not been called redundancy, it's not been called anything that I can see.

A portion is in lieu of notice & some is tax free.

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flowerybeanbag · 21/01/2009 14:43

That's not redundancy then. They are offering you a compromise agreement, which is when you mutually agree to terminate your employment, usually for an agreed sum of money paid to you, and in return you sign an agreement confirming that you won't bring any kind of legal case against them for anything.

If you sign a compromise agreement your employer must pay for you to have it checked by a solicitor.

Request that any offer they wish to make you is formally set out in writing in order that you can consider it properly.

They may well be expecting you to negotiate, and how strongly you can negotiate depends to a large extent on whether you are considering bringing any tribunal claim and/or whether you feel you would be able to do so successfully. Do you have any kind of claim you feel you could make?

shortcircuit · 21/01/2009 15:00

thank you for your help. I met with my manager last Friday & apparently this offer only stands until this Friday. Somnething doesn't feel quite right & I can't put my finger on what it is.

There has been no mention of a solicitor or of it being a compromise agreement.

If they gave me a little more (about 3-5k) I'd just be glad to get out of there & feel I could put it behind me & get on with life. The extra is so I could retrain. I feel that I 'need' to leave because returning (at whatever stage) would be difficult for both myself & the employer (having to find me a role etc) so it's in both our interests to me to go.

Something did pop up in my grievance, but I've no idea if it's anything that would make a difference.

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flowerybeanbag · 21/01/2009 15:41

How realistic £3-5k would be I don't know, depends on lots of things including how much more that is that what you've already been offered. As well as likelihood of successful tribunal claim you'd also consider what your notice period is, how long you've been there and how much this would benefit both of you. If your employer thinks it's quite likely that you'll resign soon anyway, they are unlikely to offer much.

You could go back and say you would in principle be prepared to accept an offer to compromise at, say £5k, pending the draft of an acceptable compromise agreement to be reviewed by a solicitor.

shortcircuit · 21/01/2009 15:57

£3-5 more than I've been offered.

I've been there 11 years & as far as I know my notice is 1 month. I am still signed off sick & they are paying me sick pay. I won't resign (for various reasons) & they know that.

I don't have anything in writing from them though...so I feel a bit stuck.

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dittany · 21/01/2009 16:09

This reply has been deleted

Message withdrawn at poster's request.

shortcircuit · 21/01/2009 16:42

confirmation I was offered a position in a new department, which I joined with the intention of moving with that manager to another deparment. After I told him I was pregnant, he moved without me. I have found the emails with some discussions which were previously 'forgotten' about.

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flowerybeanbag · 21/01/2009 21:27

Well ask for it in writing. You can go back and ask for more money if you want that and say you would agree to it on the basis of your new proposed figure provided there is an appropriate compromise agreement drafted.

It would help if I could understand whether you have any type of case that they could be worried about - understand how motivated they are to get rid of you and prevent a case coming to a tribunal.

You mention about something happening when you said you were pregnant. Does that mean you think you might have a sex discrimination claim? There's a very tight timescale for bringing sex discrimination claims, normally 3 months which might be extended to allow for a grievance. Would you still be within the time limit for such a claim?

6 months' salary is a fairly common ball park compromise for someone who has a solid case for a tribunal. Assuming you do have a solid case for discrimination or something else would £3-5k more than you have already been offered sit around the 6 months salaryish mark for you?

shortcircuit · 21/01/2009 21:56

Hi, what would be an appropriate compromise figure ?

I think I am too late for any sex discrimination claims, although I have been looking at personal injury (I've been off 18mths).

I've effectively been offered 9mths salary, but at my sick pay salary. I would accept it my full salary, iyswim.

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flowerybeanbag · 21/01/2009 22:11

Impossible to say. If it's personal injury rather than anything employment law related then I have no idea about claiming that or average compensation awards, it would depend on so many things. I assume if you are looking at a personal injury claim you have spoken to a solicitor about how good a claim you may have?

9 months sounds fairly generous to me, but as I say, I don't know anything about what you could be claiming in terms of any legal case and how much that would be. Obviously a compromise agreement would be for less than any financial award you would get in the event of winning a case.

Speak to your solicitor to find out about how much that could be. If you would accept 9 months salary on your full salary rate, go back and say that.

shortcircuit · 21/01/2009 22:35

..sorry, meant to write how many months payment would a compromise agreement normally reflect, ie 6 or 9 or 12 mths ?

Am keen to ask, but as I mentioned, haven't had anything other than a verbal offer, followed by some rough details (which don't seem quite right) on a piece of paper). Should i wait for written confirmation ?

My nerves are in shreds...

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flowerybeanbag · 22/01/2009 09:15

As I said earlier, 6 months is a common ball park figure, but depends on how good a case you may have. It would be less than compensation in a tribunal or court.

As I also said, if you want 9 months full salary, go back and say that, say you will in principle go for it on that basis provided you are happy with the details of a compromise agreement drafted.

You ask now should you wait until you get written confirmation but I got the impression that you had no reason to think that was coming at the moment?

shortcircuit · 22/01/2009 13:36

I've contacted them & they are busy at the moment, so maybe a few days before I hear.

I'm hoping to have a chat with someone this afternoon about.

Will keep you posted - thank you for the advice so far.

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