Weekly Pay Limit

Posted by: Sue Busfield

The limit on a week's pay - used to calculate statutory redundancy payments, and other payments - will rise from £350 to £380 where the event giving rise to compensation or payment occurs on or after 1 October 2009.

This increase will also affect other statutory compensation payments including:

• the basic and additional awards for unfair dismissal
• compensation where an employer has failed to consult a trade union or elected employee representatives when it intends to make 20 or more employees redundant
• 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
• compensation for an employer's failure to comply with its duty to notify an employee of either the date on which it intends to retire them or their right to make a request not to retire on that date
• compensation for non-compliance with flexible working procedures.

The weekly pay limit usually increases each February in line with the Retail Prices Index. As this change is taking place in October, there will no increase in the limit in February 2010 but it will increase again in February 2011.

Filed Under: All Categories / HR Legislation

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