Business News

January 2011

Employment Rights Payments Change

Annual changes to the payments for unfair dismissal and redundancies will take effect from 1 February 2011.

Under index-linking, increased limits will apply to:

• statutory redundancy payments
• the basic and compensatory awards for unfair dismissal
• the limit on guarantee payment made when employees are not provided with work and
• the minimum basic award for unfair dismissal in health and safety and certain other cases.

                                                                                    
The changes include a new upper limit on the amount of compensation for unfair dismissal, which rises from £65,300 to £68,400, and a new £400 maximum for a week’s pay in calculation of redundancy payments, up from £380.

LINK: The Employment Rights (Increase of Limits) Order 2010