A few weeks ago we reported on the Chancellor’s Budget and what impact this had for business world.
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 here.
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.