In the Budget on 22nd April, the Government announced a one-off increase in statutory redundancy pay, by taking the weekly pay limit to £380 from £350.
The announcement did not state when this would be effective. However following normal practice we would expect that any redundancies effective on or after 22nd April should be subject to this higher limit.
There is debate whether this weekly rate increase will apply to other employment related payments where these are calculated with reference to a week's pay, for example the basic award calculation in unfair dismissal claims. However we consider that this is unlikely and the Budget's intention is to limit the increase to statutory redundancy payments.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 23/04/2009.
