There are two financial settlement approaches that an employer may take with you if they make you redundant.
A. Statutory Minimum Redundancy Payment
This is the minimum payment by law that you should receive from your employer when made redundant provided you have worked for your employer for at least 2 years. It is based upon:
Minimum statutory payment
B. Enhanced Redundancy Payment
Your employer may opt to offer you an enhanced redundancy package over and above statutory minimums, but you should take note of the taxation position below to help you decide or negotiate any redundancy package.
Taxation of Redundancy Pay
Hidden Tax Traps on Redundancy
Consider Pension Contributions