Make an enhanced redundancy payment

Key points

  • Many employers observe good practice by offering enhanced redundancy payments to employees dismissed for redundancy.
  • There is specific statutory provision for employers that wish to make enhanced redundancy payments, with three options, including removing the statutory cap on a week's pay in the calculation, set out in the legislation. Any other enhanced redundancy payment scheme will be unlawful unless objectively justified.
  • To avoid enhanced redundancy payments becoming contractual, the employer should make it clear that such payments are discretionary.

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