An employee with 9 months' service is made redundant. Because
the employee has worked less than 2 years with the company, there
is no right to receive a redundancy payment under the Employment
Rights Act 1996 (see
EIM13760).
But, as a gesture of goodwill, the employer decides to pay
£1,000 to the employee on account of the redundancy.
The £1,000 falls within Section 401 ITEPA 2003 because
the Section applies whether or not the payment is made under a
legal obligation.
