Edge-over-competition improvement

Redundancy vs settlement vs final pay

This page is designed to get users to the right answer faster by showing the most common “package shape” patterns instead of only defining the terms.

Faster diagnosis
Designed for users who do not yet know which page they need
Plain-English package labels
Redundancy-heavy, earnings-heavy, or mixed package
Clear next steps
Every route ends with a specific WorkRightsUK page
If you are being made redundant and the main question is “how much am I entitled to?”

That is usually a redundancy-pay question first. Start with the redundancy calculator, then read the redundancy guide if you need the rule context.

Go to Redundancy Pay Calculator

If the package includes PILON, holiday pay, wages, or bonus and you want to know what should be in the final pay

That is often a final-pay question first. Start with the final-pay page, then use the notice and holiday pages for the component parts.

Go to Final Pay and Leaving a Job

If the package is being offered to settle claims or end employment on agreed terms

That is often a settlement-package question first. Start with the settlement checker to understand the rough tax-treatment categories.

Go to Settlement Agreement Tax Checker

Question
Redundancy pay
Settlement package
Final pay
What is it?
Statutory or contractual payment when someone is made redundant.
A package used to settle claims or end employment on agreed terms.
The last pay due when employment ends, which can include several elements.
Typical elements
Statutory redundancy pay, possibly enhanced contractual redundancy pay.
Compensation-style amounts, PILON, holiday pay, wages, bonus, redundancy amounts.
Notice pay, holiday owed, unpaid wages, bonus, deductions, possibly PILON.