Service Areas: Employment Law
Redundancy Pay Increase
The increase in statutory redundancy pay, announced in the spring budget, will take effect from 1 October 2009.
Professional Support Lawyer
Elizabeth Stevens
comments:
Back in April 2009, Alistair Darling announced an increase to the maximum amount of a ‘week’s pay’ for the purposes of calculating an individual’s entitlement to statutory redundancy pay. It has now been confirmed that the increase to £380 (from £350) will apply in relation to redundancies taking effect on or after 1 October 2009. The maximum statutory redundancy payment will therefore be £11,400 for those aged over 60 with 20 or more years of service.
The increase is intended to provide more support to individuals who are made redundant in the current economic crisis, while not placing an “unnecessary burden” on employers. There will be no further increase to this figure in February 2010 (the usual time for such increases to take effect), so it is due to remain at this level until February 2011.
It has also been confirmed that the increase will apply in relation to the calculation of all compensation payments based on the amount of a statutory ‘week’s pay’, including the calculation of a basic award in unfair dismissal claims.
Published:
12 June 2009