Redundancy Pay | Meaning and Definition

What is Redundancy Pay?

Redundancy pay is a type of compensation offered to the employees during the condition of redundancy by the employers of the company to compensate for their work and efforts before leaving the company. The redundancy-pay is not always offered when an employee is removed from the organization. But there are certain situations during which redundancy pay is granted to the employee, such as reallocation of the company, restructuring of the business, and many other company-related matters. 

A better organization with proper functions can be maintained when an HR leader looks into redundancy-pay and redundancy laws imposed by the government. The disrespect of the laws can cost a lot to the company and can be dangerous for the company’s growth, and the company’s future can get affected.