Should statutory redundancy pay be paid in addition to any contractual redundancy settlement?

Statutory redundancy pay is the minimum amount that should be paid to an employee based on age and length of service. It is not a payment made or supported by the government. If the amount of contractual redundancy pay does not reach the statutory amount then the contractual amount has to be increased to either equal or exceed the statutory amount.

Statutory Redundancy pay can be calculated here. A company may elect to pay the statutory amount in addition to the contractual amount but is under no legal duty to do so unless it is contractually required to. All contractual requirements must form part of the contract of employment.

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