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What is redundancy payment?

Redundancy payment is compensation because your job has disappeared. You may have the right to claim redundancy from your employer. There are two types of redundancy pay:

  • Statutory redundancy pay, which is set down by law
  • Contractual statutory pay, which you may get if there is a redundancy scheme in place where you work. The details are set out on your contract of employment.

It is a legal requirement for all employees to hold a contract of employment.

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