Redundancy pay limit to rise to £380
The Chancellor of the Exchequer has announced, in the Budget for 2009, an increase in the limit on a week’s pay for the purpose of calculating statutory redundancy payments from £350 to £380. However, it is not clear when the increase will take effect. This will increase the cost of redundancy somewhat, where the business operates the statutory redundancy scheme. For businesses with more generous packages, this may have no effect, but it is still prudent to check that the package is not less than the increased statutory rate.