As I mentioned in my last post, today sees a raft of new regulations introduced by the government. The policy now is to do this twice yearly, on 1st April and 1st October. Last April saw the repeal of the statutory dispute regulations under the Employment Act 2002 and there was much cheering and rejoicing. This month there is less to get excited about, although the introduction of the new Supreme Court as the final court of appeal in the UK, replacing the Judicial Committee of the House of Lords, is a moment of historic legal importance (see later). Many of the regulations are technical amendments to company or partnership law. The following are, perhaps, the most newsworthy;
As you will probably have heard by now, the Chancellor announced an increase to Statutory Redundancy Payment in the Budget yesterday, from the current figure of £350 to £380 per week. He hasn’t said from when the new increase will take effect and the lower figure itself was only introduced in February this year. The government is also considering further legislation on SRP rates in the next Parliament.
So, what does the increase mean? SRP is only payable (by the employer) to employees with two years’ continuous employment experience and that figure is paid to employees between the ages of 22 and 41. For qualifying employees over 41 they will receive 1.5 times £380 = £570. For those under 22 the applicable figure becomes £190 per week.
I ask this because a Private Members’ Bill, sponsored by Lindsay Hoyle MP, is currently making its way through Parliament. Its aim is to increase the level of statutory redundancy pay given to employees with more than two years’ service from the current cap of £350 per week per complete year of service (or £525 per week for workers over 41) in to line with average earnings, as opposed to RPI with which it is currently linked. This would mean an increase in the cap from £350 to £500/750. The award is made up to a maximum of 20 years’ service. Over the years it has fallen behind inflation and means that the maximum an employee made redundant at the moment can receive (in the absence of a claim for unfair dismissal or an enhanced redundancy package offered by the employer) is a maximum sum of £7,000 (for those under 41 at dismissal) or £10,500 for those over 41 (and thus would have to be 61 at dismissal with 20 years service to receive it). In addition employees are entitled to be given their contractual, or statutory notice, and can be asked to work the notice, be put on garden leave for the duration or be paid in lieu. If an employee has less than two years service with an employer he/she is not entitled to any statutory redundancy payment, only to notice.
Hello again and all best wishes for 2009. I have to say that I don’t feel particularly enthusiastic about life, the universe and everything at the moment but that may be because I’ve been laid low over Christmas with a most virulent gastric bug that put paid to just about all my plans. At least I can say I had more time to spend in my bathroom but you really don’t want to know anymore about that.
Despite the continuing economic gloom life here has been fairly quiet. I saw my first compromise agreement of the year today – not a bad package and a bonus was included (which is not something I’ve been seeing that often recently).
Redundancy
adams, administration, insolvency, liquidation, Redundancy, redundancy payments, redundancy payments office, statutory redundancy payments, whittard, woolworths, zavvi
In times where nobody is sure whether or not their job will be safe in the future, it is useful to know what your entitlements are should the worst happen. Statutory (legal) provisions are not the most generous, and consist of an entitlement to notice pay under your contract of employment, or a week for each year full year worked (to a maximum of 12 weeks), whichever is higher. This is payable in accordance with your normal salary amount.
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