redundancy payment: meaning, definition, pronunciation and examples
B2Formal (Business/Legal/Employment)
Quick answer
What does “redundancy payment” mean?
A sum of money paid by an employer to an employee whose job has been eliminated.
Audio
Pronunciation
Definition
Meaning and Definition
A sum of money paid by an employer to an employee whose job has been eliminated.
A statutory or contractual compensation given to a worker upon dismissal due to the role or position no longer being needed or existing. It often serves as a financial bridge while seeking new employment.
Dialectal Variation
British vs American Usage
Differences
In UK/British English, 'redundancy' is the standard legal and business term for layoffs/job elimination. In US/American English, 'severance pay' or 'severance package' is far more common. 'Redundancy payment' is understood but rarely used in US corporate or legal contexts.
Connotations
UK: Has legal weight, linked to specific statutory rights and calculations. US: Sounds formal and potentially British; 'severance' is the emotionally and legally neutral term.
Frequency
High frequency in UK employment discourse. Low frequency in US; 'severance pay' is dominant.
Grammar
How to Use “redundancy payment” in a Sentence
[Employee] received a redundancy payment.[Company] made/offered a redundancy payment to [employee].The redundancy payment [was/will be] [amount].Vocabulary
Collocations
Examples
Examples of “redundancy payment” in a Sentence
verb
British English
- The company will redundate 50 workers. (rare/formal)
- He was made redundant and received a payment.
American English
- The company laid off 50 workers and provided severance.
- Her position was eliminated, triggering a payment.
adverb
British English
- The roles were declared redundantly. (very rare/awkward)
- He was, redundantly, let go.
American English
- The division was summarily downsized.
- Her job was unceremoniously eliminated.
adjective
British English
- The redundancy consultation process is ongoing.
- She is facing a redundant situation.
American English
- The severance agreement terms were negotiated.
- The layoff notices were issued yesterday.
Usage
Meaning in Context
Business
The HR department is finalising the redundancy payments for the affected staff.
Academic
The study analysed the impact of statutory redundancy payments on labour market mobility.
Everyday
After the factory closed, he used his redundancy payment as a deposit for a van to start his own business.
Technical
The claimant's redundancy payment was calculated based on age, length of service, and weekly pay, in accordance with the Employment Rights Act 1996.
Vocabulary
Synonyms of “redundancy payment”
Strong
Neutral
Weak
Vocabulary
Antonyms of “redundancy payment”
Watch out
Common Mistakes When Using “redundancy payment”
- Using 'redundancy' to mean 'repetition' in this context (e.g., 'His speech had a lot of redundancy payment').
- Confusing 'redundancy payment' with 'unemployment benefit' (which is state welfare).
- Incorrect preposition: 'payment *for* redundancy' is less idiomatic than 'redundancy payment' as a compound noun.
FAQ
Frequently Asked Questions
No. A notice period is the time you continue to work or are paid for after being told you are being made redundant. A redundancy payment is an additional lump sum compensation paid on top of (or sometimes including) your notice pay.
In many jurisdictions, including the UK, part or all of a statutory redundancy payment is tax-free up to a certain limit. Payments above the statutory amount or contractual enhancements are usually subject to tax. Local tax laws must always be checked.
You can, but it is unusual. Refusing it typically means you are contesting the fairness or legality of the redundancy itself, often leading to an employment tribunal claim where the payment might be part of a settlement.
For employees with sufficient continuous service, statutory redundancy pay is a legal right in the UK. Employers may also offer more generous contractual redundancy pay. Laws vary significantly by country.
A sum of money paid by an employer to an employee whose job has been eliminated.
Redundancy payment is usually formal (business/legal/employment) in register.
Redundancy payment: in British English it is pronounced /rɪˈdʌndənsi ˈpeɪmənt/, and in American English it is pronounced /rɪˈdʌndənsi ˈpeɪmənt/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A golden handshake (for a large, often executive-level redundancy payment)”
- “Getting a package”
Learning
Memory Aids
Mnemonic
Imagine a RED train carriage that's no longer needed (redundant). The station manager pays to have it removed. The PAYMENT for the redundant carriage helps it move on. Similarly, a redundancy payment helps an employee move on from a job that's no longer needed.
Conceptual Metaphor
BRIDGE/JUMPSTART: Money as a bridge to the next job or a jumpstart for a new venture.
Practice
Quiz
In American English, what is the most common equivalent term for 'redundancy payment'?