Redundancy pay and notice

An employee who has been given notice of dismissal for redundancy can leave the employment without working the whole of their notice and still retain the right to a redundancy payment, as long as strict rules are followed.

The employee must give the employer a written counter-notice that the employment is to end on an earlier date (section 136(3) ERA 96). However, the employer can challenge this counter-notice with a further written notice insisting on the original end date, as long as the employer takes this step before the counter-notice has expired. Refusing to work to the end of the notice period in these circumstances can result in loss of redundancy pay. An employment tribunal can award some or all of the redundancy pay, depending, for example, on how the tribunal views the employee’s reasons for leaving early (Section 142(2) ERA 96).