The Statutory Redundancy Pay weekly rate that is increasing from £350 to £380 will carry through until February 2011.
Now that the final impact assessment has been published by BIS for the 1 October 2009 increase to the value of a week's pay for statutory redundancy pay, it's clear that the increase to £380 from £350 will carry through to 2011. Regulations provide for an annual review of the value in February but as this is based on the RPI (Retail Prices Index) which is falling, applying the current formula would have led to a decrease in February 2010 to £340. The Government has therefore decided that £380 will remain in force as the value until February 2011.
As well as the regulations providing for the value of a week's pay to increase they also increase:
- The unfair dismissal basic and award. The new limit will apply to dismissals taking effect on or after 1 October 2009
- Compensation for non-compliance with flexible working procedures
- Compensation where an individual has been unjustifiably disciplined by a trade union
- Compensation where an employer has failed to consult with a collective bargaining unit
- Compensation in relation to a right not to be excluded or expelled from a union
- Compensation for failure by an employer to allow an employee to be accompanied to a disciplinary or grievance hearing
- Compensation for failure by an employer to give a statement of employment particulars
- Failure of employer to comply with duty to notify employee of date on which he intends employee to retire or of right to make request not to retire on the intended date
- Various payments due in the event of insolvency (redundancy pay, arrears of pay, pay in lieu of notice, holiday pay, unpaid compensation for unfair dismissal)