When you lose your job, it can be a very difficult and confusing time. One of the things you may be worrying about is how you will support yourself and your family. If you have been made redundant, you may be entitled to a redundancy package. This can help you to tide over until you find another job. Here is what you need to know about redundancy packages.
What is a redundancy package?
In business, the term “redundancy package” refers to the financial compensation and other benefits that an employee is entitled to receive when they are made redundant – that is, when their job is no longer needed, and they are dismissed from their role.
The amount of redundancy pay that an employee is entitled to receive is based on a number of factors, including their length of service, their age, and their weekly pay. The minimum amount of redundancy pay that an employee can receive is set by law and is currently four weeks’ pay for each year of continuous service, up to a maximum of 20 weeks’ pay.
Redundancy packages can also include other benefits, such as payments in lieu of notice and payments for loss of office. These benefits are not legally required but may be included in an employee’s contract of employment or may be offered as part of a voluntary redundancy package.
Who is entitled to a redundancy package?
It is a common misconception that only employees who have been with a company for a long time are entitled …