Make an enhanced redundancy payment
- 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.