Changes on the 1st February 2009

Hello and welcome to this week’s employment law news from Reculver Solicitors.

Don’t forget the following changes coming into effect from the 1st February 2009:

· A ‘weeks pay’ for the purposes of calculating statutory redundancy payments is going up from £330 to £350 for employees being made redundant whose last date of employment is on or after the 1st February 2009. The BERR Ready Reckoner for calculating statutory redundancy payments is very helpful and can be seen by clicking on this link: Ready Reckoner

· The maximum statutory redundancy payment will therefore go up from £9,900 to £10,500. Don’t forget of course that if an employee is made redundant, in addition to the statutory redundancy payment, s/he is also entitled to contractual or statutory notice (whichever is greater) or payment in lieu.

· In claims of unfair dismissal, the maximum Compensatory Payment for people dismissed after the 1st February 2009 is going up from £63,000 to £66,200. This Compensation Payment is an award made by the Employment Tribunal in unfair dismissal claims to compensate for loss of earnings, pension etc from the date of dismissal until the date that the employee finds suitable alternative employment. Don’t forget that employees who win unfair dismissal claims are also entitled to a ‘Basic Award’, which is equivalent to the statutory redundancy payment. The vast majority of claimants will not receive compensatory awards even approaching the new statutory cap of £66,200, but higher earners may well find the statutory cap is still inadequate to compensate them for their losses.

· Don’t forget that the National Minimum Wage for adults already went up to £5.73 per hour from the 1st October 2008.

Do let us know if you would like any further information on these issues.

James Carmody
RECULVER SOLICITORS

Tel: 0207 324 6271 Fax: 0207 477 2276 info@reculversolicitors.co.uk
12-16 Clerkenwell Road, London EC1M 5PQ*
www.reculversolicitors.co.uk www.compromise-agreement.net

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