Redundancy week’s pay – if the dismissal takes effect on or after 1 February 2013, the new limits will increase as follows.
The cap on a week’s pay for the purposes of calculating a statutory redundancy payment or basic award in an unfair dismissal claim rises from £430 to £450.
The maximum redundancy payment/basic award for unfair dismissal will rise from £12,900 to £13,500. Remember that’s calculated using the following formula….
For each complete year of service that the employee was aged:
• over 41, they’re entitled to 1.5 weeks’ statutory pay
• 22-40, it’s one week’s pay; and
• 21 and under, the rate is half a week’s pay
Unfair dismissal – The maximum compensatory award for unfair dismissal will rise from £72,300 to £74,200. Remember, however, that does not apply to cases of discrimination which remain ‘uncapped’ in terms of potential compensation
Health and Safety related/being an employee representative or trade union representative or an occupational pension trustee dismissal – The minimum basic award in such cases rises from £5,300 to £5,500.
And by way of reminder from April 2013…..
- Statutory maternity pay, maternity allowance, adoption pay and paternity pay – these rates rise from £135.45 to £136.78 per week
- Statutory sick pay – this rises from £85.85 to £86.70 per week
So, remember, when calculating or considering any of the above you need to apply the new levels/rates.
So are your processes & payroll ready?