Season’s greetings to all our clients and friends.
Welcome to the latest news update from Integra Legal.
Not very exciting but the Government has recently announced that from 1st February 2011 the new upper limit for a “week’s pay” will increase from £380 to £400. The maximum week’s pay is used for a number of purposes, including calculating statutory redundancy pay and the basic award for unfair dismissal.
The maximum compensatory award for unfair dismissal also increases from £65,300 to £68,400 from 1st February 2011. This means that the maximum award for unfair dismissal (basic award plus compensatory award) will be £80,400 from this date.
See link for details of all of the increases made by the Employment Rights (Increase of Limits) Order 2010: http://www.legislation.gov.uk/uksi/2010/2926/schedules/made
The Minister of State for the Department for Work and Pensions has also recently announced the proposed rates for statutory sick pay and statutory maternity, paternity and adoption pay for 2011. The changes are expected to come into force on 11 April 2011 and are:
- The prescribed rate for statutory maternity, paternity and adoption pay and maternity allowance will increase from £124.88 to £128.73 per week; and
- Statutory sick pay will increase from £79.15 to £81.60 per week.
What should employers do?
No immediate action is needed. However, if you are contemplating making redundancies which will take effect on or after 1st February 2011 the increased maximum week’s pay will need to be considered when calculating statutory redundancy pay.
Please contact Wayne Smith at Integra if you want to discuss these changes or any employment related issue at wayne.smith@integralegal.co.uk