Redundancy Pay Set To Increase From April
1 March 2017
The thought of being faced with redundancy can fill many employees with fear. It’s a disheartening experience, especially if you have dedicated many years of your career to one particular company.
But whilst it the reality of redundancy is more than a little upsetting, there is a slight bit of good news. From April 2017, statutory redundancy pay is set to increase. There will also be an increase on the amount an employment tribunal can award an employee for unfair dismissal.
Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age.
The weekly pay is subject to maximum amount, but this will increase by £10 to £489 from April onwards. This also means that the top end of redundancy payment will increase by £300 to £14,670.
Although statutory redundancy pay increases annually, in line with the retail prices index, industry experts are recommending that employers double check how the increases could impact any anticipated redundancies.
Moreover, the maximum amount of compensation for unfair dismissal is increasing to £80,541. It currently stands at £78,962. But this increase only applies when the date of termination falls on or after April 6 2017.
Maternity and paternity leave pay is also set to increase by £1.50 to £140.98 per week whilst statutory sick pay will also see a small rise to £89.35 per week.
These increases will also be matched by the increase in the national minimum wage, which will also come in to effect on April 6. This is designed to give workers over the age of 25 a national ‘living wage’ in an attempt to help workers and families meet the everyday cost of living.
If you do find yourself facing redundancy, we're here at HR Consultancy to help your career get back on track. We'd love to help to find your next role. Please don't hesitate to get in touch with us.
Written By Mary Palmer