Can I counter offer a redundancy package?

Often yes for enhanced terms — but not for statutory redundancy itself. Settlement agreements are voluntary. ACAS confirms you can negotiate and make a counter offer. Statutory redundancy pay follows a fixed legal formula and is not something you negotiate upward — though enhanced or ex-gratia payments frequently are.

What ACAS says

A settlement agreement is voluntary — you do not have to agree. You can negotiate and make a counter offer. Discussions are usually confidential. SeeACAS — discussing and negotiating an offer.

What is normally fixed

  • Statutory redundancy — calculated from age, service and capped weekly pay (GOV.UK calculator)
  • Accrued holiday pay — you are generally entitled to untaken holiday; amount may be disputed but not usually “negotiated away”
  • Minimum notice — statutory or contractual minimums apply

What might be negotiable

  • Enhanced / ex-gratia redundancy or compensation above statutory
  • Notice period and whether it is worked or paid (PILON structure affects tax and UC earnings)
  • Payment timing and split of components on payslips
  • Employer contribution to legal fees
  • Reference wording (agreed form)
  • Restrictive covenants and confidentiality carve-outs
  • Termination date, garden leave, benefits continuation

This is general information — not negotiation strategy or legal advice. Your solicitor (required for settlement agreements) can advise on your situation.

Questions to ask before counter-offering

  1. Can you provide a line-by-line breakdown of the package?
  2. How much is PILON vs qualifying redundancy vs holiday?
  3. When will each component be paid?
  4. Is the enhanced element a company-wide formula or individual?
  5. What reference will you provide?
  6. What restrictive covenants apply after termination?

Model a counter-offer financially

Before proposing different numbers, model what your counter-offer would actually mean after tax and for Universal Credit capital/earnings. Use scenario comparison:how to compare redundancy packages.

A higher gross counter-offer is not always higher take-home — especially if more of it is reclassified as PILON or taxable earnings.

What we do not do

We do not tell you whether to accept, reject or counter. We help you understand what the offer contains and what changing components may mean financially. Employment law and tribunal claims require professional advice.

Related guides

FAQ

Can I negotiate enhanced redundancy pay?

Enhanced or ex-gratia payments are commonly negotiated; statutory redundancy follows a fixed formula.

Will a counter offer affect my relationship with the employer?

Settlement discussions are usually confidential (ACAS), but individual circumstances vary — ask your adviser.

Model your offer and counter-offer

Compare employer offer vs your counter-offer with scenario comparison — illustrative take-home and UC capital only.

Use the calculator

Sources: ACAS — settlement agreements;GOV.UK — redundancy rights. Last reviewed September 2026. Not legal advice.