ARTICLE
15 September 2009

Increase In A Week´s Pay To £380 From 1st October

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CMS Cameron McKenna Nabarro Olswang

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In the April Budget the Government announced a one-off increase in statutory redundancy pay by increasing the weekly pay limit to £380 from £350.
United Kingdom Employment and HR

In the April Budget the Government announced a one-off increase in statutory redundancy pay by increasing the weekly pay limit to £380 from £350. This becomes effective from 1st October. However, contrary to some expectations, this increase is not confined to statutory redundancy payments but covers a week's pay for all calculations where a week's pay is limited. Therefore it includes the basic award for unfair dismissal.

The new rate applies where the event giving rise to the entitlement to compensation or other payments occurs on or after 1st October 2009.

The regular annual increase in February has been suspended for 2010 so the next increase in a week's pay is now due in February 2011.

A copy of The Work and Families (Increase of Maximum Amount) Order 2009 (SI 2009/1903) is available here.

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 15/09/2009.

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