Package negotiations

I have been informed that my position is redundant. I dont really have any truck with this, I wasn't planning to work for a great deal longer and things have really changed in recent months.

What is important though is that I try and negotiate the best possible package. I have enjoyed a good relationship with my employer.

I have been offered statutory redundancy pay, in my case 24.5 weeks x Max.
together with a 3 month package in lieu of notice which includes my salary, car allowance, health plan and the relevant holiday pay for that period. I understand that this latter element is subject to tax and NI contributions.

What I want to try and negotiate with them is to incorporate 2 of the 3 months pay in lieu of notice into the statutory element by agreeing to pay me 45 weeks instead of 24.5. (20.5 weeks is the number that swallows up the 2 months notice amount.
On top of that I recieve just 1 months pay in lieu of notice.

Where I would stand with this proposal.

Hi

If you have a contractual or statutory entitlement to 3 months notice (which looks like you will based on your length of service), then the HMRC would take a dim view to you coming to an agreement with your employer which purported to pay you less, particularly if you are going to be receiving a tax-free ex gratia or enhanced redundancy payment. If I was your employer I would not agree to this, as they could ultimately be held liable for the unpaid tax.

The best you could do would be to try to persuade your employer to gross up the tax free amount. They wouldn't have to do this, but it might be worth a punt.

Regards

Pete

Thank you very much for your response, it is most helpful.