Increases to statutory redundancy pay and unfair dismissal weekly cap

Employers should be aware that from the 1st February 2011 :

• The limit on weekly pay for the purposes of an Unfair Dismissal Basic Award and Statutory Redundancy Pay increased from £380 per week to £400 per week;
• The maximum Compensatory Award for Unfair Dismissal also increased from £65,300 to £68,400; and
• The maximum Unfair Dismissal award (total Basic Award and Compensatory award) increased to £80,400.

These increases mean that employees are entitled to higher statutory redundancy payments and also, should an employer be proven guilty in an unfair dismissal claim, the penalties enforceable by an employment tribunal will be higher.

It has never been more important for employers therefore to follow fair and correct procedures when looking to reduce staff levels or undertake redundancies.