Redundancy Clause in New Contract

[kiwidollabill]

Hi All

I have the opportunity to rewrite my employment agreement in conjunction with my boss.  I've said I want to include a redundancy clause - this is primarily in the case our company is bought (I own a small portion of stock so this would still be a win).  He's going to let me do the initial draft.

Before I consult with our external HR agency, what are the typical terms in this sort of clause?  % of salary for each yr employed?  Any advice here is welcome.

[nnls]

my company in Australia does it that you get something a long the lines of 3 months of salary paid out, plus an additional 2 weeks for every year (or part there of) worked.

So for example if you worked for the company for 5 years you get 3 months and plus 2 weeks x 5, so 3 months plus ten weeks of pay.

[Venturing]

I worked for a major kiwi company when they went through a redundancy process. Standard payout was 3 months salary.

[kiwidollabill]

Thanks for this, I might and push my luck and try 3 months + 1 month for each year worked (backdated to start of current role in Jun '15)

I worked for a major kiwi company when they went through a redundancy process. Standard payout was 3 months salary.

Thanks, you weren't working for Xero by any chance?

[gooki]

I'd aim for one month for every year worked.

[appleblossom]

I worked for MOJ and was made redundant a few years ago after approx 2.5 years service. All up I got 9.5 ish weeks payout, so it must have been 6 weeks for the first year, and 3 weeks pro rated per year after that or something.
This would be a pretty standard government clause as it was on a duplicate of the PSA contract.

Now with a private company (300+ staff) and we have something but not quite as good. It is 1 month for the first year, then another 2 weeks per year after, to a maximum of 52 weeks total.

3 months for the initial would be a lot, but 3 months flat isn't much if you are there for a few years. You should definitely do some kind of increasing payment. And make sure it includes to prorate the final (part) year of service.