In email update 48 we reported on the Chancellor’s Budget and what impact this had on your business. You can access email update 48 by clicking on the following link:

http://www.justemploymentlaw.co.uk/features/update48

The Department for Business Enterprise and Regulatory Reform (BERR) has now published its final impact assessment on the Work and Families (Increase of Maximum Amount) Order 2009.

The report states that ‘on the grounds of fairness, the Government has decided to introduce a one-off increase in statutory redundancy pay and compensation payments to help those being made redundant without placing undue burdens on employers and the Exchequer’.

The current maximum amount of a week’s pay (for calculating redundancy payments) is capped at £350. From 1 October 2009, the maximum weekly pay (for calculating redundancy payments) will be £380.

The Government has stated that the limit will not rise again until February 2011. You can read the final impact assessment by clicking on the following link:

http://www.berr.gov.uk/files/file51607.pdf

The Government has also stated that they will be making attempts to ensure that businesses will be aware of the changes 12 weeks in advance of 1 October 2009, which will involve updating permanent websites, including the statutory redundancy pay calculator, and replacing of information leaflets.

The statutory redundancy pay calculator (which is also known as the ‘Ready Reckoner’) is a useful tool to working out the redundancy pay due to a particular employee. You enter the particular employee’s age, length of service (maximum of 20) and weekly pay (the present maximum being £350) and the ready reckoner calculates the redundancy pay due.

You can access the Ready Reckoner by clicking on the following link:

http://www.berr.gov.uk/whatwedo/employment/employment-legislation/employment-guidance/page33157.html

Just Employment Law Ltd are well placed to provide you with advice and assistance if you require to take the necessary, but unfortunate step, of contemplating redundancies. In email update 37 – Planning for Redundancies – we provided an overview of the redundancy process and highlighted the potential risks involved and emphasised the importance of planning in order to minimise the risks involved.

You can access email update 37 by clicking on the link below:

http://www.justemploymentlaw.co.uk/features/Update37

Next week we shall be providing you with an email update on the very recent House of Lords’ decision in the case of Stringer v HMRC.

Just Employment Law Ltd is an Appointed Representative of CBG Insurance Brokers Ltd.
Just Employment Law is not a firm of solicitors.