News: Contract Law
Firms may need training in statutory redundancy changes
02 February 2009
A number of changes to the amount owed due to unfair dismissal and redundancy payment claims have come into effect, which could create a need for additional employment law training.
Under the annual index-linked formula, there have been increases to the legal minimum companies must pay in statutory redundancy.
Implemented from February 1st, section 227(1) of the Employment Relations Act 1999 has been amended to raise the maximum amount of "a week's pay" to be increased from £330 to £350.
Other alterations increase the maximum compensatory award for unfair dismissal from £63,000 to £66,000, with similar rises in a number of related areas.
In addition, the limit has been raised on the amount in guarantee payments which employees who are not provided with work can receive.
Brendan Barber, the general secretary of the Trades Union Congress, has called for further changes to the act to be implemented in order to increase the support companies are required to give staff.
