The current limit on a week’s pay for the purposes of calculating statutory redundancy payments is £350.
However, in light of the current economic pressures and rising number of redundancies, the Government has announced that a further increase, to £380 per week, will apply as of 1 October 2009. This limit will also apply to the calculation of other types of payment, such as the basic award for unfair dismissal.
Whilst employers may balk at the thought of the increased costs involved in streamlining their businesses, they can take comfort from the fact that the next increase won’t be until February 2011.
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