UK redundancy guide · reviewed 23 September 2026
Enhanced redundancy packages: how to read the offer
An enhanced package is not just 'statutory, but bigger'. The useful bit is understanding the formula, the extras, the conditions and which pieces are actually valuable to you.
Enhanced or contractual redundancy pay means the employer is offering more than the statutory minimum. The detail may come from your contract, company policy, collective agreement or, in some cases, established custom and practice.
Read the formula before the total
Start with how the employer got to the number. Common schemes use a multiplier such as a number of weeks of pay for each completed year of service, sometimes with salary caps or service caps.
Check whether the scheme uses your actual weekly pay or a capped figure, whether partial years count, and whether age changes the calculation.
- Weeks-per-year multiplier
- Length of service used
- Any weekly or total cap
- Whether notice, holiday and bonus are separate
- Whether pension, benefits or outplacement support continue
Check where the entitlement comes from
Enhanced pay can be contractual, written into a policy or collective agreement, or offered specifically for the redundancy exercise.
Acas also notes that a repeated, well-known employer practice can sometimes become an implied contractual term through custom and practice. That is a legal question rather than something a calculator can decide.
Compare the package in net terms
An extra £10,000 of gross package is not necessarily an extra £10,000 in your bank account. The value depends on whether the extra amount is qualifying severance, notice pay, bonus, holiday or another taxable component.
DunDunSee is designed to let you model those pieces separately and then compare the result with a baseline package.
Turn the package into a number you can use
DunDunSee™ separates the moving parts of a redundancy package, estimates take-home and helps translate it into financial runway.
Open DunDunSee™