UK Recruitment Glossary
Redundancy
In recruiter context
UK statutory redundancy pay is half a week's pay per year of service under 22, one week per year 22-40, and 1.5 weeks per year 41+, capped at £700/week (2024 rate) and 20 years. So the maximum statutory redundancy payment is around £21,000. Many employers offer enhanced packages above statutory through settlement agreements. Consultation must be at least 30 days for 20-99 redundancies and 45 days for 100+. Voluntary redundancy is offered first; compulsory follows if not enough volunteers come forward. The first £30,000 of any genuine redundancy payment is tax-free.
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