LRD survey results: contractual redundancy pay

In 2011, LRD surveyed reps, collecting updated information about recent changes to redundancy procedures and payments. The survey confirmed that, unsurprisingly, redundancy pay terms are often modelled on the statutory scheme, although they often disregard the maximum cap on a week’s pay.

Even though there is no statutory entitlement to redundancy pay for employees with less than two years’ service, the survey revealed that some employers do make redundancy payments to these employees.

More than one in 10 respondents reported cuts in the level of redundancy pay (or discretionary payments) in response to the economic downturn, but there were still plenty of examples of better-than-statutory provision.

The results of the survey can be found in LRD’s Workplace Report magazine, June 2011 (www.lrdpublications.org.uk/publications.php?pub=WR&iss=1567&id=id136747)