Redundancy: Some Facts
Article published on 23rd July 2008
Over the next few articles we will be looking at redundancy and Accident, Sickness & Redundancy Insurance (ASR).
Redundancy is usually when someone loses a job because either his or her employer needs to cut back on the workforce for financial reasons or when the job when someone loses a job because that job is no longer needed.
If you are made redundant, your employer will usually supply a redundancy payment, or 'golden handshake', to help compensate you for the loss of your job and associated earnings. This payment may even be part of a redundancy package that can sometimes include additional payments made to you for reasons other than your redundancy.
If your employer gives you a redundancy payout before then official end of your career with them, your P45 form will show the pay and tax deducted from it through the 'Pay As You Earn' (PAYE) scheme.
If, however, you have already left your job when any redundancy payment arrives and you already have you P45 form, your employer should not give you another one. You should instead be given a copy of the letter that your ex-employer is required to send to the Inland Revenue stating the amount you were paid, the date it was paid to you and the tax deducted from it.
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