| Press Release |
 New Redundancy Rates - 13 February 2009
Business need to be aware of new redundancy rates which came into effect at the beginning of February. Partner, Victoria Solomon, of Gloucester solicitors Treasures says “On 1 February 2009, a week’s redundancy pay increased from £330 to £350, and the maximum statutory redundancy payment rose to £10,500 from £9,900. This has now gone up by nearly £4,000 since as recently as 2000, when the statutory maximum stood at just £6,600.”
On the same date the compensatory award for unfair dismissal, rose from £63,000 to £66,200. “This means that businesses found to have dismissed an employee unfairly may be forced to pay up to £76,700 – the compensatory award plus the statutory maximum payment” Mrs Solomon continued.
“In some cases, particularly those involving discrimination claims and whistle-blowing, there is no cap on the amount of an award that can be made, exposing businesses to potentially unlimited penalties. This makes it more important than ever, particularly in these days when redundancies are becoming increasingly commonplace, that employers always act fairly and within the rules.”
Mrs Solomon concluded “Any employer considering redundancies, or investigating a workable alternative, should take professional advice to ensure they understand how much they need to pay and don’t run the risk of penalties. Firms are very welcome to contact me on 01452 525351.
|
|
