ARTICLE · 24 APRIL 2009

Budget Increases Statutory Redundancy Pay

CMS Cameron McKenna Nabarro Olswang

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In the Budget on 22nd April, the Government announced a one-off increase in statutory redundancy pay, by taking the weekly pay limit to £380 from £350.

United KingdomTax

Anthony Fincham

Sarah Ozanne

In the Budget on 22nd April, the Government announced a one-off increase in statutory redundancy pay, by taking the weekly pay limit to £380 from £350.

The announcement did not state when this would be effective. However following normal practice we would expect that any redundancies effective on or after 22nd April should be subject to this higher limit.

There is debate whether this weekly rate increase will apply to other employment related payments where these are calculated with reference to a week's pay, for example the basic award calculation in unfair dismissal claims. However we consider that this is unlikely and the Budget's intention is to limit the increase to statutory redundancy payments.

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