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Employment: Changes to rates from 1 October 2009

31 January 2012 |

Increases to statutory redundancy payment and basic award for unfair dismissal

The limit on the maximum amount of a week’s pay taken into account to calculate the amount of statutory redundancy payments and basic awards for unfair dismissal increased with effect from 1 October 2009 from £350 to £380.   The maximum awards for both are now £11,400.

As previously reported no further increase will now take effect until 2011.

Broadly, the increases affect dismissals where the ”appropriate date” falls after 1 October  2009 but care should be taken as the rate increase does apply to some other situations.  The “appropriate date” is the “effective date of termination” as calculated under statutory rules in the Employment Rights Act 2006.

Disclaimer

Content is for general information purposes only.  The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice.  If you require assistance in relation to any issue, please seek specific advice relevant to your particular circumstances.

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

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To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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