From tomorrow, the 1st of February 2012, the following changes to Statutory Redundancy Pay and unfair dismissal weekly cap will apply:

  • The limit on weekly pay for the purposes of an unfair dismissal basic award and Statutory Redundancy Pay increases from £400 per week to £430 per week; and
  • The maximum compensatory award for unfair dismissal also increases from £68,400 to £72,300.

Implications for Employees

Any increase to potential compensation or statutory redundancy payments in the current climate is always good news for employees, however the question remains whether an increase of £30 to the weekly pay used for the redundancy calculation really does make a difference to an employee when in the unfortunate situation of being made redundant.

Implications for Employers

This is yet another change in employment law in favour of employees and which employers will always feel reluctant to accept in this ever difficult economic climate. However, forthcoming changes, including the increase in the unfair dismissal qualifying period on 6th April 2012 from one to two years, are very much in favour of the employer and should allow employers to manage their businesses and employees more effectively, without worrying about the risk of claims.

If you require advice in relation to these changes in employment law, or indeed any employment law issue, please don’t hesitate to contact me.