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The weekly maximum pay which can be taken
into account when calculating statutory
redundancy pay is set to increase from 1
October 2009. Employees who have at
least two years’ continuous service
qualify for a redundancy payment.
The entitlement is as follows:
- for each complete year of service
until the age of 21 - half a week’s pay
- for each complete year of service
between the ages of 22 and 40 inclusive
- one week’s pay
- for each complete year of service
over the age of 41 - one and a half
weeks’ pay.
A week’s pay is that to which the
employee is entitled under his or her
terms of contract as at the date the
employer gives minimum notice to the
employee. The maximum statutory limit for
a week’s pay is £350 with effect from 1
February 2009 and will increase to £380
with effect from 1 October 2009. The
maximum service to be taken into account
in calculating redundancy is 20 years.
This means that the maximum statutory
payment cannot exceed 30 weeks’ pay or
£10,500 (£11,400 Oct 2009).
The maximum week’s pay figure is
generally reviewed annually however the
£380 limit will continue until 1 February
2011. Employers may, of course, pay in
excess of the statutory minimum.
Internet link:
Direct gov website redundancy |
