< Go Back Is Statutory Redundancy Pay Increasing in 2022? Posted: Apr 27, 2022 As of 6th April 2022, the Employment Rights - Increase of Limits order will come into practice. This increases the limit that employees are entitled to should they accept redundancy or be dismissed and win a case of unfair dismissal at a tribunal.
Is Statutory Redundancy Pay Changing in 2022? The statutory redundancy pay will increase from 6th April, meaning that the maximum amount payable for redundancy is now £571. This has increased from £544.
The maximum compensation that you can receive from an unfair dismissal has now increased from £89,493 to £93,878.
These changes have been issued to reflect the increased cost of living but will only be in effect for any redundancies taken or any dismissals made on or after 6th April. Any entitlement where the Effective Date of Termination (EDT) is before 6th April 2022 will be made at the previous rate.
If you require further information regarding your entitlement or need to clarify your Effective Date of Termination, it’s advisable to speak to employment lawyers Leicester, as they can help you to understand your rights.
Does This Affect My Statutory Rights As An Employee? The changes to pay limits will benefit several employment rights including:
● Statutory redundancy payments.
● Compensation for unfair dismissal, should a tribunal fall in your favour.
● The minimum award for dismissal regarding certain health and safety legalities.
As an employee with over 2 years’ service within a company, these changes may entitle you to more money based on your weekly pay amount. Where previously, if you were paid £550 per week, you would only receive funds to cover £544 per week, now you would be entitled to your full weekly payment.
However, as age is now a factor based on the abolition of mandatory retirement age, working later in life could mean that you don’t receive as much benefit for your longer service.
If you’re concerned about your rights consulting a solicitors in Leicester can help you to determine what you’re entitled to and give you peace of mind.
How Much Redundancy Pay Will I Receive?
If you are dismissed on the grounds of redundancy and have worked for the company in excess of 2 years, the company must pay a reasonable amount based on your age, length of service and weekly pay rates.
The changes to statutory redundancy pay mean that an employee can now be paid a maximum of £571 of their weekly pay. If your weekly pay exceeds this, you will still be entitled to this amount.
To calculate your exact redundancy entitlement, the government portal provides a helpful redundancy calculator:
https://www.gov.uk/calculate-your-redundancy-pay
If you feel you have been offered an unfair amount for your redundancy, it’s advisable to contact employment lawyers , who can help you determine what you’re entitled to and approach your employer if you need to contest a decision. At Fosse Law, our team would be happy to help.