Employment payments From 1 February 2008, various employment protection limits, which relate to employee dismissal and other detriment, were increased in line with inflation (3.9%). The changes made involve no alteration to the structure of the awards. The limit on a week’s pay for calculating statutory redundancy pay increases from £310 to £330 per week. The maximum statutory redundancy payment is set at £9,900 ((20 years x 1.5 weeks) x £330). The statutory redundancy scheme remains dependent on the age of the claimant and their length of service with the employer. Although the scheme is based on age-related criteria this is permissible due to an exemption in the Employment Equality (Age) Regulations 2006. The weekly pay limit also applies in calculating the amount payable to former employees in the event of insolvency of the employer, in respect of a debt which is referable to a period of time, such as arrears of pay. The statutory guarantee payment rises from £19.60 to £20.40 per day. This amount is payable when an employer is unable to provide work for an employee on any day they would normally expect to work under the employment contract. The number of days the award is payable is a maximum of five in any period of three months. The limit on compensatory awards in cases of unfair dismissal is increased from £60,600 to £63,000. However, this upper limit is rarely awarded in practice. There is no limit where the employee is unfairly dismissed or selected for redundancy connected with health and safety matters or public interest disclosure. The increases apply where the event, giving rise to the entitlement to compensation occurs on or after 1 February 2008, such as the relevant date of termination in the case of redundancy. These limits will continue to be reviewed annually and index linked. Paul Tew, Pay Magazine Snowdrop provides a range of Payroll solutions that are fast, flexible and easy-to-use, to suit the many and varied needs of each organisation. To find out more about the software and services that we provide, please click here >>