What is redundancy?
Redundancy is generally where an employer needs to reduce his or her workforce. It may happen because a work place is closing down, or because fewer employees are needed for work of a particular kind. Normally your job must have disappeared. It is not redundancy if your employer immediately takes on a direct replacement for you. But it will not matter if your employer is recruiting more workers for work of a different kind, or in another location.
What is a redundancy payment?
The statutory redundancy payments scheme aims to ensure that those who are dismissed through no fault of their own receive compensation. Employees with more than 2 years service are statutorily entitled to a lump sum from their employer, based on their age, length of service and contractual earnings up to a maximum limit which is currently £450 per week and is reviewed annually.
For further information about limits and statutory amounts visit Directgov