Make sure you know the new rules on redundancy
Article date: 25.11.09
In these days of accelerating redundancy pay we are keen to highlight to businesses the recent rises in redundancy pay.
The maximum amount for the calculation of a week’s pay is now £380(a), and the maximum statutory redundancy payment is £11,400 (b). This has now gone up by nearly £5,000 since 2000, when the statutory maximum stood at just £6,600.
The compensatory award for unfair dismissal has risen from £63,000 to £66,200. This means that businesses found to have dismissed an employee unfairly may be forced to pay up to £77,600 (c) - the maximum compensatory award plus the statutory maximum payment.
In some cases, particularly those involving discrimination claims and whistle-blowing, there is no cap on the amount of an award that can be made, exposing businesses to potentially unlimited penalties. This makes it more important than ever, particularly in these days when redundancies are becoming increasingly commonplace, that employers always act fairly and within the rules.
Any employer considering a redundancy programme, or investigating a workable alternative, should consult one of our employment lawyers.
(a) £350.00 if the date of the redundancy was before 1 October 2009
(b) £10,500 if the date of the redundancy was before 1 October 2009
(c) £76,700 if the date of the redundancy was before 1 October 2009
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