Severance Pay

Severance pay is the total cash and benefits package employees receive on being made redundant. Severance includes the statutory redundancy pay employers must pay eligible employees (as long as they meet minimum requirements), plus accrued holiday pay. Severance can also include non-statutory benefits that are paid as a result of company policy and/or negotiation between those being made redundant and their employers. Non-statutory elements can include bonuses, pension payments, legal fees, training credits and other benefits.