London Evening Standard journalists offered improved redundancy terms

The owners of the London Evening Standard have greatly increased the redundancy terms they plan to offer to up to 20 editorial staff as the Russian oligarch Alexander Lebedev completes his takeover on 22 February.

Evening Standard journalists had feared Lebedev would offer far less generous terms than those typically granted by the paper's owner, Daily Mail & General Trust, which is selling him a 75.1% stake in the paper.

There had been concern that redundancy payouts would be capped at £12,000 for each employee, but they will now be capped at £70,000 after a personal intervention by the DMGT chairman, Lord Rothermere.

Under statutory provisions for redundancy, employees can expect a minimum of one week's pay for each year of service up to 20 years. Employees in the first wave of redundancies are set to receive two weeks' pay for every year worked pro rata, plus a lump sum for their notice period.

A memo sent to staff working on the Evening Standard outlined the more generous redundancy terms being offered. It claimed that between 15 and 20 redundancies were planned by the new management – far less than first feared.

The first tranche of redundancies are expected "within weeks rather than months" after the new editor, Geordie Greig, and management have had time to make assessments and plan for the future.

According to the memo, seen by MediaGuardian.co.uk, staff will face a cap on potential payoffs of £70,000 each.

This offer is described as a "one-off discretionary and non-contractual" arrangement made at the behest of Lord Rothermere.

The terms are being offered as part of a package, which will be partially funded by DMGT, that also sets out terms to be offered to staff being made redundant in the future.

They would receive one week's pay for each year served at the Standard, paid at a statutory minimum of £350 a week to those less than 41 years old. Older staff would be given one-and-a-half weeks' pay for each year worked, paid at £525 a week.

Lebedev and his fellow buyers will also offer to pay some legal costs for those involved in redundancy negotiations.

The new owners are also keen to have the takeover deal completed by 22 February, partly to fall neatly into the financial year but also to prevent a power vacuum occurring at the paper as Greig is understood to be lined up to take the helm very soon afterwards, possibly even the next day.

The former Tatler editor Greig was confirmed as the new editor last week.

That announcement came shortly after Lebedev's takeover of the Evening Standard was confirmed by DMGT late last month.

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