From 1 October 2009, Redundancy pay will go up from the current £350 per week to £380 per week.
Readers of our blog and attendees at our annual employment law seminar will know that a year or two ago amendments were made to authorise a one off increase to the rate of redundancy pay unrelated to the rate of inflation (as distinct from the normal annual increase in the rate of redundancy pay which kicks in every February).
This blog reported the increase to £380 here, but we now know the increase will take place on 1 October 2009 and there won’t be an annual increase in February 2010. The rate will therefore remain at £380 per week until February 2011.
This change will only benefit those who are paid more than £18.2k per year and even after the change those earning £19,760.00 per year will still only receive redundancy pay based on a capped week’s pay rather than a real week’s pay.