DTZ has cut the redundancy package for staff to the government’s statutory level.
Property Week has learnt that the listed firm has changed the terms of redundancy compensation from one week for each year served to the government’s statutory amount.
The redundancy payment due to each employee under the statutory redundancy payment scheme depends on his or her age and length of service (up to 20 years).
This determines the number of weeks' pay due, which is then subject to a limit on weekly pay. The new maximum amount of ‘a week’s pay’ has just been increased from £330 to £350 from 1 February.
So, for example, a senior director who has worked at DTZ for 15 years will receive just three weeks’ salary above the notice period.
This new lower package will apply to the staff who depart after the latest round of consultations at the firm. Around 100 people are involved.
A spokeswoman for DTZ said: ‘Like many companies we have brought the redundancy compensation into line with the rest of the market by offering statutory payment terms’.