How to Negotiate a UK Redundancy Package

Why this matters

Most UK candidates accept the first redundancy offer. The candidates who negotiate typically capture 10-25% more on the ex-gratia portion plus better outplacement, more flexible notice, or better reference wording. The negotiation isn't aggressive — it's structured and professional. Companies expect it.

Step-by-step

1. 1 Calculate statutory entitlement first (the floor below which negotiation can't go)
2. 2 Identify what's negotiable: ex-gratia amount, notice period, outplacement, reference, covenants, equity
3. 3 Take legal advice (employer typically pays £500-£1,500 for this)
4. 4 Make a structured counter-offer in writing — specific asks, brief justification
5. 5 Negotiate one round, maybe two — past the second round usually doesn't move
6. 6 Use the £30,000 tax-free threshold strategically — maximise the ex-gratia portion
7. 7 Get all agreements in writing before signing the settlement

Common mistakes

• ✗Accepting the first offer immediately — most negotiate up 10-25%
• ✗Negotiating only the ex-gratia amount and ignoring outplacement, reference, covenants
• ✗Negotiating aggressively — UK redundancy negotiation is professional, not adversarial
• ✗Not using the £30,000 tax-free threshold deliberately
• ✗Not getting legal advice — employer pays for it; declining is leaving money on the table