Redundancy

7. Normal Payment Practice

In practice, some employers pay more - sometimes a lot more - than the minimum.

7.1 You may pay more for several reasons.

• To encourage people to volunteer.
• Out of goodwill, to maintain good relations with ex-employees, or to keep up the morale of employees who remain.
• Because of provisions written into your employees' contracts, or because of custom and practice in your industry.

7.2 Redundancy pay of up to £30,000 is usually free of tax.

• Check your redundancy payment plans in advance with HM Revenue & Customs.