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Increase in HR Claims for 2009

Posted by: Sue Busfield

ACAS's annual statistics report for the year up to 31st March 2009 show increases of 27% in Unfair Dismissal claims; 37% in claims for breach of contract; and 58% in disputes about redundancy pay. ACAS will attempt to settle an employment claim to avoid the need for a full tribunal hearing.

The increase in claims reflects the increase in redundancies made due to the recession, and the difficulties faced by employers when conducting redundancy programmes.

Increasingly companies are considering alternatives to redundancies in an attempt to retain skilled staff for the anticipated upturn in the economy. There remain employment issues when considering options such as sabbaticals.

If you are considering either a restructuring/redundancy programme or a scheme to retain staff but without the same level of costs you may wish to have support from Stonebridge HR Consultants.

Filed Under: All Categories / HR Updates

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

National Minimum Wage

Posted by: Sue Busfield

The National minimum wage sets minimum hourly rates that companies must pay their employees. As of 1 October 2009, the National Minimum Wage (NMW) rate will increase to the following amounts:

• £5.80 to workers aged 22 years or above 
• £4.83 to workers aged between 18 and 21 years
• £3.57 to workers aged between 16 and 17 years

Filed Under: All Categories / HR Legislation

Tips and Gratuities

Posted by: Sue Busfield

As of 1 October 2009, it will no longer be legal for employers to use tips, service charges and gratuities paid to employees via payroll to top up wages to meet the National Minimum Wage.

Filed Under: All Categories

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