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.