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RedundancyRealityCheck.co.uk

Redundancy pay vs notice pay

Redundancy isn’t one number. Most packages are a mix of redundancy pay + notice pay (worked or PILON) + other bits (holiday pay, bonus, etc.).

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Quick definitions

Redundancy pay

Compensation linked to age, weekly pay and years of service (statutory) plus any enhanced scheme.

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Notice pay

Pay covering your notice period. Either worked normally or paid as PILON.

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The order that stops surprises

  1. 1) Calculate redundancy pay (base).
  2. 2) Calculate notice pay (PILON vs worked, tax-aware).
  3. 3) Put take-home totals into monthly runway to see your danger month.
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