Compare · Jurisdiction

England vs Scotland

Employment law is reserved to Westminster. The redundancy formula and the £751 weekly cap apply identically across Great Britain. What changes is where you file the claim and the income-tax band on any over-£30k slice.

What is identical

The statutory formula in ERA 1996 s.162
The weekly pay cap of £751 from 6 April 2026
The 20-year service ceiling
The £30,000 tax-free threshold under ITEPA 2003 s.401
PENP and PILON tax treatment
Collective consultation thresholds (20+/100+)

What differs

Tribunal venue: Employment Tribunal Scotland (judiciary.scot) rather than the GB ET. Same procedural rules.
Income tax on the over-£30k slice: Scottish-resident taxpayers pay Scottish rates (gov.scot), which differ from rUK above the basic-rate threshold. NICs are UK-wide.
Fair Work First: Scottish Government procurement policy ties certain public contracts to Fair Work principles. Not statutory but affects practice in public-sector redundancies.

Worked tax example

Total package £45,000 (statutory + enhanced). After £30k exemption, £15,000 taxable. For an rUK higher-rate taxpayer, income tax at 40% = £6,000. For a Scottish higher-rate taxpayer (42% intermediate, 45% higher, 48% top), depending on which Scottish band the slice falls into, the bill ranges from £6,300 to £7,200. Employer Class 1A NIC at 15% (£2,250) is the same in both jurisdictions.