Redundancy and retention bonus


| 5 Posts


9 Jan, 2013 10:01


I’ve never used the discussion board before so I’d thought I try this first. I wonder if anyone can give me some advice from your experience.

Unfortunately I have been away from the HR world for quite some time due to illness and due to start back in a new standalone role, but feel I’ve forgotten everything!  I have dealt with redundancy once or twice before but never dealt with a site move or retention or relocation packages.

We have a small team of 10 and the Business has plans to close and move site to a different part of country more than 60 miles away. The team are aware of the move there has been informal meetings with the director, along with a lot of change in recent months. It is unlikely that any of the staff will want to move so they will be put at risk of redundancy.

I don’t have the full details yet or a define date but it could be anytime between February to June this year. We have a mix of fixed term employees and longer serving with different notice periods. It’s important that the business retain a few key skilled employees in order to ensure a smooth transition until the business finishes on the old site. Hopefully you can clarify a few things please. 

1)      Is it better to give formal notice of the risk of redundancy now starting the consultation process, if so will this be ongoing until I have exact time scales?

2)      Once we know which jobs will need to go first, and have finished consultation would these individuals be given 30 days notice before the first termination or their contractual notice?

3)      For the roles and individuals we need to retain to the last day. Would retention bonuses be discussed and covered in the first consultation meeting?

4)      I’ve been looking through some of the related threads and have seen a few examples (some a few years old) of percentages paid for retention and relocation. Does anyone have a template of the correct wording I could use once the director has decided what he is willing to pay?

5) Is there anything else I would need to consider?

Any help is much appreciated




  • Sandra

    | 431 Posts

    Chartered Fellow

    9 Jan, 2013 15:03

    You need to place everyone at risk at the start of the consultation process.  You then conduct consultation advising everyone that you do not know the exact termination date, if redundancies go ahead, and just provide the timeframe.  During consultation you can discuss a retention bonus for those employees that are needed to wind things up in the first meeting.  You should also formally discuss relocation - you never know someone may wish to relocate.  Once you know when the site closure will take place you can then set up dismissal meetings giving contractual notice with the right to appeal.  The process should be closely documented.  
  • Avril

    | 5 Posts


    9 Jan, 2013 15:45

    Thank you Sandra

    That has helped me a great deal.



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