redundancy pay: meaning, definition, pronunciation and examples
B2-C1Formal, Business/HR, Legal, News
Quick answer
What does “redundancy pay” mean?
Money paid to an employee when they are dismissed because their job is no longer needed.
Audio
Pronunciation
Definition
Meaning and Definition
Money paid to an employee when they are dismissed because their job is no longer needed.
A statutory or contractual financial compensation provided to a worker who is made redundant, often calculated based on length of service, age, and pay.
Dialectal Variation
British vs American Usage
Differences
Predominantly British/Commonwealth term (UK, AU, NZ). In American English, 'severance pay' or 'severance package' is the standard equivalent. The concept of 'redundancy' as a reason for dismissal is less codified in US law.
Connotations
In the UK, it carries connotations of statutory rights and employment protection. In the US, 'severance' is more often seen as a discretionary or negotiated benefit.
Frequency
High frequency in UK business and media; very low frequency in US contexts where 'severance' is used.
Grammar
How to Use “redundancy pay” in a Sentence
be entitled to [redundancy pay]receive [redundancy pay]calculate [redundancy pay] based onpay [redundancy pay] toVocabulary
Collocations
Usage
Meaning in Context
Business
The company will offer statutory redundancy pay to all affected employees.
Academic
Studies indicate that generous redundancy pay can moderate the negative psychological impact of job loss.
Everyday
After the factory closed, he used his redundancy pay to retrain.
Technical
The employee's redundancy pay is calculated as: (weeks pay) x (relevant service) x (age factor), subject to statutory caps.
Vocabulary
Synonyms of “redundancy pay”
Strong
Neutral
Weak
Vocabulary
Antonyms of “redundancy pay”
Watch out
Common Mistakes When Using “redundancy pay”
- Using it as a countable noun (e.g., 'a redundancy pay' – INCORRECT).
- Confusing it with 'pension' or 'retirement pay'.
- Using 'redundancy salary' instead of 'redundancy pay'.
- Spelling error: 'redundency pay'.
FAQ
Frequently Asked Questions
No. Notice pay is for the period when you are working out your notice. Redundancy pay is a separate compensation for losing your job due to redundancy.
In many jurisdictions, including the UK, a portion of redundancy pay (up to a statutory limit) is tax-free.
Statutory redundancy pay is the legal minimum set by the government. Contractual redundancy pay is an enhanced amount agreed in your employment contract.
Generally, no. You must be dismissed by your employer on the grounds of redundancy to be eligible.
Money paid to an employee when they are dismissed because their job is no longer needed.
Redundancy pay is usually formal, business/hr, legal, news in register.
Redundancy pay: in British English it is pronounced /rɪˈdʌndənsi peɪ/, and in American English it is pronounced /rɪˈdʌndənsi peɪ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A golden handshake”
- “To be shown the door with a cheque”
Learning
Memory Aids
Mnemonic
REDundancy Pay: Remember RED for 'Reduction in Employee Demand' - the pay you get when demand for your role is reduced.
Conceptual Metaphor
COMPENSATION IS A CUSHION (softens the blow of job loss).
Practice
Quiz
In which variety of English is the term 'redundancy pay' most commonly used?