Increase in Limits for Statutory Redundancy Pay
Employment Minsiter Sir Reg Empey announced that, from 1 October 2009, redundancy payments will be based on a higher weekly wage limit.
For the purpose of calcultaing redundancy payment the maximum "weeks pay" will rise from £350 to £380.
The statutory redundancy payments are intended to compensate employees who are are dismissed through no fault of their own (this may include the ending of fixed term contracts where the employee has more than two years service).
Employees who are made redundant with at least two years continuous service are statutorily entitled to a lump sum from their employer, based on their age, length of service and contractual earnings up to a maximum limit which is currently £350 per week but will rise to £380 from 01 October 2009.
Calculating payments:
For redundancies made on or after 1 October 2006, the amount is calculated as:
Up to the age of 21, you will receive half a week's pay for each completed year of service.
22 - 40 years of age, you will receive one week's pay for each completed year of service.
41+ years of age, you will receive 1½ weeks' pay for each completed year of service.
Further information on Redundancy Entitlement and Statutory Rights can be found at:
http://www.delni.gov.uk/er3_templated_march_2009.pdf#13
Susan Lavery | 22 September 2009 - 11:08am |
