Redundancy Payment

When an employee is made redundant they are entitled to a redundancy payment provided the employee has more than two years service.  This can arise in one of two ways:

1. An enhanced redundancy payment under a contract of employment.

2. A statutory redundancy payment

In the latter case the redundancy payment is calculated by reference to the employee’s age and length of service to give a multiplier.  This is then used together with a week’s pay to calculate the statutory redundancy payment.