Workplace glossary

What is Redundancy Pay?

Definition & practical guide1 min read

Redundancy pay is compensation paid when an eligible employee loses their job because their role is no longer required. Eligibility and calculation rules vary by country, contract and employer policy.

On this page

It is usually separate from normal wages, unused leave and notice pay.

Common questions

What does Redundancy Pay mean in simple terms?

Redundancy pay is compensation paid when an eligible employee loses their job because their role is no longer required. Eligibility and calculation rules vary by country, contract and employer policy.

How does Redundancy Pay work in practice?

It is usually separate from normal wages, unused leave and notice pay.