The government has recently confirmed that the weekly limit used to calculate statutory redundancy pay will increase to £380 on 1st October 2009. This is an increase of £30 on the current rate of £350.
The weekly limit for calculating statutory redundancy pay is normally increased every February. However, the increase due to take place in October is a one-off increase as a result of the 2009 Budget. The government has also confirmed that the £380 weekly limit will not increase in February 2010, and will remain at that rate until February 2011.
The increase has been brought in as a result of the recession to provide a greater safety net for employees without overburdening employers. The increase will also apply in the Employment Tribunal when calculating the basic award in unfair dismissal claims.
