Can anyone please explain the difference

[dot.haukes]

between severance pay and redundancy pay? Is there anything in the British employment statutes that mentions severance payments at all? I have also been told that certain sector workers are able to claim redundancy payments based on their service in the sector, not just with their most recent employer, how does that work?

[SODIT]

if you take redundancy pay it means your job no longer exists
if you take severance it means you are making yourself out of work
some insurance policies will not pay out on there polices if you take severance
have taken severance twice and that is the way the union rep explained it
if you have cover on mortgage and any hp payments check your policy
hope this helps

[dot.haukes]

That's a slightly different scenario than I thought, i thought severance pay must be when your empoloyer breaks your contract and was payable as well as redundancy.

[SODIT]

the firm i last worked at , said for example ,
50 people are to be made redundant in 3 months
so the firm open up a severance package
50 people can leave with a payment for length of service
+ 3 months pay
if they don't get 50 people to volunteer they then pick who they want to go and shuffle the jobs about.

[SODIT]

ps there used to be a maximum payment from a tribunal of �6,000 ( this is a few years back )
So the firm i worked at always paid people more that �6000 extra so they could not be taken to a tribunal

[samuelcat]

Im being made redundent in 2 weeks and I am getting both. My firms 3rd party contract is being moved 200 miles away.We were offered jobs but due to distance everyone declined. So I am getting my redundancy for 18 yrs service plus 12 weeks severence from the new company.

[factor-fiction]

Severance can be the same thing as a redundancy. A severance payment is set by the employer. Some companies offer a reasonable severance/redundancy package; others just pay the statutory minimum for redundancy

[SODIT]

http://business.timesonline.co.uk/tol/business /commercial/calculator/

[SODIT]

http://www.tuc.org.uk/tuc/rights_redundancy.cf m

[factor-fiction]

buildersmate is back in town and may be able to help