Further to my blog of 23 April 2009, the Government has now confirmed that the increase in the weekly limit used to calculate statutory redundancy payments from £350 to £380, will take place on 1 October 2009.
Statutory redundancy payments are calculated by using a formula that takes into account a person's age and length of service. This formula results in a number of weeks' pay, which is then multiplied by the employee's weekly pay subject to a maximum of, currently £350 per week. As of 1 October 2009, this figure will rise to £380.
The Government announced in the 2009 Budget that it would be making a one-off increase in the weekly limit, to provide more support to those individuals who are made redundant in the current economic climate. The weekly limit has been uprated annually since 1999, but the Government has stated that the limit will not rise again in February 2010, as it would usually do, instead remaining at £380 until February 2011.
Disclaimer: Anything posted on this blog is for general information only and is not intended to provide legal advice on any general or specific matter. Please refer to our terms and conditions for further information. Please contact the author of the blog if you would like to discuss the issues raised.