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Employment Law Payments and Awards – New statutory limits from February 2010
Wednesday, December 23rd, 2009
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Section 34 of the Employment Relations Act 1999 and Article 33 of the Employment Relations (Northern Ireland) Order 1999 provide for an increase or decrease in the following statutory limits from 1 February each year according to the year-on-year change in the retail price index (RPI) at the previous September.
The reductions shown for 1 February 2010 are calculated according to the statutory formulae and based on the fall in the RPI of 1.4% in the year to September 2010. In some cases the rates do not change because of the statutory rounding rules. The rates in Northern Ireland are expected to take effect from 15 February 2010.
The only exception to the general reduction in the levels of these payments and awards is the weekly limit on statutory redundancy pay (SRP). At the time of Budget 2009, the Government announced that, using powers provided by section 14 of the Work and Families Act 2006, a one-off increase in the cap on the weekly rate of SRP, from £350 to £380, would be made from 1 October 2009.
Using powers also provided by section 14 of the Work and Families Act 2006, there is a one-off suspension of the annual review of the rate of SRP on 1 February 2010. The RPI in September 2009 was -1.4%. In the absence of the October 2009 increase, this would have meant that the redundancy cap would have remained unchanged at £350 (£350 × 98.6% = £345.10, rounded up to £350). Instead, the weekly limit stays at £380 from February 2010.
| Statutory Provision Effective: | Feb 2009 | Oct 2009 | Feb 2010 |
| Minimum basic award for unfair dismissal or selection for redundancy on grounds related to union membership or activities | £4,700 | £4,700 | £4,700 |
| Minimum compensation awarded for exclusion or expulsion from a trade union | £7,300 | £7,300 | £7,200 |
| Limit on daily amount of guarantee payment | £21.50 | £21.50 | £21.20 |
| Minimum basic award for unfair dismissal for participation in health and safety activities, exercise of rights under the Working Time Regulations, activities as a pension scheme trustee, activities as an employee representative in connection with redundancies or a transfer of undertakings | £4,700 | £4,700 | £4,700 |
| Limit on amount of compensatory award for unfair dismissal. | £66,200 | £66,200 | 65,300 |
| Maximum weekly amount paid from National Insurance Fund to pay contractual debts owed on the insolvency of the employer | £350 | £380 | £380 |
| Maximum weekly amount of a basic or additional award of compensation for unfair dismissal or redundancy payment. | £350 | £380 | £380 |
| Award for unlawful inducement relating to union membership or activities, or to collective bargaining | £3,100 | £3,100 | £3,100 |
Further information:
The Employment Rights (Revision of Limits) Order 2009
Explanatory Memorandum to the Employment Rights (Revision of Limits) Order 2009
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