Notice pay vs redundancy pay in the UK

Redundancy pay and notice pay solve different problems. Confusing them leads to under-claiming — or to false claims that an employer short-paid a package.

Redundancy pay

A statutory (or enhanced) lump sum for loss of the job by reason of redundancy. In GB it is driven by age bands, service years, and capped weekly pay.

Notice pay

Pay for your notice period — worked, on garden leave, or paid in lieu (PILON). Length comes from contract or statutory minimum notice, whichever governs.

Holiday and other sums

Accrued but unused holiday is usually separate. Commission, bonuses, and share awards depend on contract and scheme rules. Always ask for a line-by-line settlement statement.

How to read an offer letter

• Identify the statutory redundancy line and any enhancement.
• Identify notice (worked vs PILON) and whether benefits continue.
• Check holiday, bonuses, and deductions.
• Compare statutory redundancy with an independent estimate.

Estimate the statutory line

Redundancy pay calculator · method: How statutory redundancy is calculated.

Official sources to keep open

Bookmark the primary official pages for your jurisdiction and re-check them whenever caps or bands change. Calculator sites (including this one) lag legislation if maintainers miss an update.

• GOV.UK — redundant employee rights
• GOV.UK — redundancy pay calculator
• Citizens Information — redundancy (Ireland)
• GOV.UK — Stamp Duty Land Tax
• Revenue.ie

Disclaimer

This article is general information for consumers in the UK and Ireland. It is not legal or tax advice and is not a substitute for advice on your facts. See our Disclaimer.

Practical next steps

Write down your inputs, run an estimate on this site, then immediately cross-check the official calculator for your jurisdiction. Save PDFs or screenshots of both results with the date visible. If you speak to HR or a solicitor, share the input list — not only the headline number — so they can reproduce the math.

Revisit this page after any April employment-limits update or budget that changes tax bands. We publish a rates-verified date on the calculator tools; guides can lag by days or weeks after a surprise fiscal announcement.

Get personalised help when

• You are being asked to sign a settlement agreement under time pressure.
• Selection for redundancy may involve discrimination or whistleblowing issues.
• The employer is insolvent or using a different legal entity than your contract names.
• Stamp duty higher rates or first-time buyer status is disputed on complex ownership facts.

City Law Solicitor provides general information and free estimators for UK and Ireland consumers. We do not act as your solicitor via the website contact address.