| The Compensation amount offered by an employer | | | | complete years of employment as at the date of |
| within a Redundancy Compromise Agreement for | | | | termination of employment. |
| termination of employment will typically include the | | | | An employee who has worked for a continuous |
| following: | | | | period of between 1 months and 2 years is entitled |
| 1. Compensation for Loss of Office | | | | to one weeks notice and pay. This increases by 1 |
| 2. Statutory Redundancy Payment | | | | week after 2 years of continuous employment for |
| 3. Damages for Dismissal | | | | every additional year employed. Therefore, after 5 |
| 4. Payments in Lieu of Notice (PILON) | | | | years employment, an employee is entitled to 5 |
| How much an employee receives by way of | | | | weeks notice and pay; if an employee has been |
| compensation for loss of office is very much at the | | | | employed for 10 years that employee is entitled to |
| discretion of the employer and will invariably take into | | | | 10 weeks notice and pay. The maximum amount of |
| account such factors as the amount of money it has | | | | notice however is limited to 12 weeks, so any period |
| available to pay the employee in excess of the | | | | employment beyond 12 years does not entitle an |
| statutory minimum entitlement, how long the | | | | employee for more than 12 weeks notice. |
| employee has worked for the employer, the | | | | An employer may however only offer an employee |
| employee's monthly salary and any other factor that | | | | as part of a redundancy compromise agreement |
| may be important to the employer in reaching its | | | | package an amount equating to items 2 and 4 |
| decision. | | | | above, which is the minimum statutory entitlement |
| Statutory redundancy pay is however based on a | | | | that all employees with 2 or more years of |
| prescribed formula which I refer to later in this article. | | | | continuous employment are entitled to. |
| See further down this article for details on how to | | | | If an employee is only offered the statutory |
| calculate this element of the redundancy | | | | minimum redundancy entitlement, the employee |
| compensation. | | | | ought to consider whether it is in fact in his or her |
| Damages for dismissal refers to compensation for | | | | best interest to sign a Redundancy Compromise |
| losing one's employment protection rights, which are | | | | Agreement given that a Redundancy Compromise |
| currently valued by the courts and tribunals at | | | | Agreement is designed to prevent an employee |
| approximately £200 to £400. These employment | | | | bringing an Employment Tribunal claim. As there may |
| protection rights are acquired by employees who | | | | be no added benefit in such circumstances for the |
| remain with an employer for a continuous period of | | | | employee signing a redundancy compromise |
| 12 months of more. | | | | agreement, the employee should think carefully |
| Finally, to determine payments in lieu of notice, an | | | | before signing such an agreement. |
| employee needs to go back to his or her contract of | | | | It is particularly advisable in such circumstances, to |
| employment. If either the contract is silent on the | | | | seek professional legal employment advice at |
| point or there is no written contract, then the period | | | | redundancy compromise agreement Milton Keynes or |
| of notice and the amount that an employee is | | | | for your local area. |
| entitled to in lieu of notice is based on the number of | | | | |