When employees are made redundant because their positions have become unworkable or unprofitable, the part of the contract dealing with redundancy comes into force. This will vary from employer to employer and from employee to employee, but there are certain legal minimum standards that must be adhered to.

First is the Statutory Redundancy Notice Period, a minimum duration for which the employee must be allowed to remain at work, which depends upon the length of time he or she has worked for the employer. This period will be on full pay.

Should the employee be prevented from actually attending work for reasons outside of his or her control, a payment in lieu of notice can take effect, although payment must be in full.

A second payment, such as a lump sum pay-off, will depend upon the contract that the employee has with the employer, or will be the result of any agreements prior to redundancy. Where companies have sought candidates for voluntary redundancy, this payment might form part of an incentive package to speed the process along in a mutually beneficial way.

Peninsula Business Services can provide advice and assistance on any aspect of redundancy pay. Contact us online today, call 0800 0282 420, or use our callback form to arrange for us to get in touch at a time that is convenient for you.