redundancy pay

Redundancy pay is compensation given to employees when their job is no longer needed, typically due to company restructuring or layoffs. It serves as financial support during the transition period. The amount depends on factors like length of service, age, and salary. Employers usually calculate redundancy pay based on statutory minimums, which can be supplemented by contractual agreements or company policies. This payment aims to recognize the employee's contribution and help them financially while seeking new employment.