Severance Pay Calculator

Typically as weeks of pay per year of service, with the weekly pay figure capped by statute. Ten years at one week each, capped at £700, is £7,000 — regardless of whether actual weekly pay was higher.

Statutory schemes cap the weekly figure so the state-mandated minimum stays affordable for employers and proportionate across incomes. Anything above the cap has to be negotiated, not claimed.

Usually not — pay in lieu of notice is normally at full contractual pay, which is why it is calculated separately here. Conflating the two is the most common error in checking a severance offer.

It varies. Many jurisdictions treat a genuine redundancy payment more favourably than notice pay or accrued leave, which are usually taxed as ordinary earnings. Check the rules where you are before spending it.

Accrued but untaken leave is normally paid out at the daily rate on termination. It is a separate entitlement from redundancy pay and is not affected by the statutory cap.

Frequently, yes — statutory pay is a floor, not a ceiling, and enhanced packages are common where the employer wants a clean settlement. The statutory figure is the starting point for that conversation, not the end of it.

A contract in which you waive claims in exchange for a payment, usually above the statutory minimum. Independent legal advice is a formal requirement in several jurisdictions for the waiver to be valid at all.

It varies by country and by element. A genuine redundancy payment often attracts more favourable treatment up to a threshold, while notice pay and accrued leave are typically taxed as ordinary earnings.

Generally yes in principle, but selection must be for a genuine reason unrelated to the leave, and in many jurisdictions employees on family leave have enhanced protection or priority for redeployment.

A legally required period before redundancies take effect, with minimum durations that often scale with the number of people affected. Failing to consult properly can create separate liability regardless of whether the redundancy itself was fair.

Employers are typically required to consider suitable alternative employment, and refusing a genuinely suitable offer can forfeit statutory pay. What counts as suitable is fact-specific and often contested.

Frequently — many schemes delay benefit by the period the severance is deemed to cover. The interaction differs sharply between jurisdictions, so check before assuming the two stack.