A redundancy payment is compensation because your job has disappeared. You may have the right to redundancy pay from your employer. There are two sorts of redundancy pay:
- statutory redundancy pay, which is set down by law
- contractual redundancy pay, which you may get if there is a redundancy scheme in place where you work. The details will be set out in your contract of employment.
You cannot be paid less contractual redundancy pay than the amount of statutory redundancy pay you are entitled to. If your contractual redundancy scheme gives you less money than the statutory amount, you must still get the statutory amount