How to handle redundancy negotiations

It’s a conversation that no one wants to have. But if you find yourself facing redundancy, there are ways to secure a better deal that will buy you time and help in finding your next role. The process involved and what an employee is entitled to upon redundancy vary depending on the contract type and country of employment. Julia Lemmer, leadership and career coach at Hanaco Consulting, recommends that anyone in this situation first look into whether the employer is complying with local laws. “Do they respect all their legal requirements … and do they handle the process in a fair way which implies it is justified that you are the person that needs to go?” Lemmer said. Employees should also ask how many staff members actually need to be let go and whether the employer started a conversation with them and sought other solutions before reaching the decision to cut them. Where the employee feels the decision was unjustified — and has no interest in maintaining a relationship with their employer — they may want to consider legal action, Lemmer added. As with salary negotiations, employees facing redundancy should do their research and be clear about what they are asking for. Here are some steps to consider during these conversations: Negotiate your severance payment A full-time employee is often entitled to a severance package, which is usually based on their years of service with a company. In the United Kingdom, a full-time employee is entitled to statutory redundancy pay if they have worked for an employer for two years or more. The individual’s age, length of service, and weekly pay then dictate the final amount they will receive. In the United States, severance is not mandatory, but many companies have policies in place and will reach agreements with their employees. Typically, such an agreement can include one or two weeks of pay for each year of employment. Those who have worked with an employer continuously on a consultant contract may also receive redundancy payment. In the U.K., professionals deemed self-employed or consultants can be entitled to this if they were treated as employees. This is decided by different criteria, including whether an individual was paid through payroll or upon production of invoices or whether they have a company email address or business cards. Regardless of the seniority of your position, do your research and reach out to those in your network who work in similar roles or sectors to help establish what you are owed. Employees should also take into consideration any part of their salaries composed of commissions or annual bonuses. Severance pay is generally fixed, Lemmer said, but depending on an individual’s role, they might be in a strong position to ask for more money. “That's typically either when you’ve [held] a high management position, or the employer is rather afraid of you giving bad press, or they are interested in the knowledge transfer that you're doing,” she said. Employees who have been handling large budgets or projects, for example, will have a lot of essential information to hand over upon their departure and might be able to leverage this for a higher payout, Lemmer said. Be prepared to justify your expectations by citing your contributions to the company, and know what amount you are happy to walk away with, she added. Get support for your job search Preparing your CV, finding relevant opportunities, and completing job applications can be time-consuming. To give yourself a head start, Lemmer suggested requesting time off during your notice period — the time the employer must allow between the letter of dismissal and an employee’s last day of work. Ideally, this won’t impact your final severance package, which typically takes into account any unused annual leave. In some countries, employers are also obligated to provide staff members with time to search for jobs during their notice period. Managers and colleagues can also help with the job search by reaching out to their networks to facilitate introductions or even make recommendations to other hiring managers or companies, Lemmer said. Get a reference before you leave During your job search, you might need a letter of reference on short notice, so you should ideally obtain this by your last day, Lemmer said. The ability to get this letter afterward may depend on the trust between you and your former employer, as people may be less reactive to your requests once you leave the company, she said. Line up freelance work The notice period is typically around two working weeks, although this can depend on the local laws and the number of years a person has been with the company. Employers may agree to a longer notice period to allow for the completion of ongoing projects or the smooth transfer of knowledge. While this arrangement can also benefit them, be prepared to make your case by highlighting where you can have impact in your remaining weeks or months. Beyond this, ask whether there might be opportunities to continue working on a freelance basis, such as on specific projects, Lemmer said. This kind of work would be viewed positively by potential employers as it shows your expertise is valued, she added. Lining up freelance work also helps avoid significant gaps in your CV as you look for your next full-time role. Take advantage of other benefits Some employers allow departing staff members to buy their office furniture or information technology equipment at a reduced price, Lemmer said. And if you are completing any training or certifications that the employer is paying for, you can advocate for the opportunity to finish them on the employer’s dime, she said.