The statutory limit on a week’s pay for redundancy payment calculations will rise by £30 to £380 in October this year. The increase means the maximum statutory redundancy payment will rise from £10,500 to £11,400.
The increased limit will also apply to the basic part of unfair dismissal compensation awards (although the compensatory part of the award remains capped at £66,200), and to a range of other awards made to employees whose employment rights have been breached by their employers.
A number of businesses have continued to make redundancies during 2009 as the effects of the economic downturn continue.