The Employment Rights (Increase of Limits) Order 2020 published

05 March 2020

The Employment Rights (Increase of Limits) Order 2020 has been laid before parliament, and the maximum statutory weekly redundancy pay figure will increase from £525 to £538 from 6 April 2020.

This is applicable in England, Wales and Scotland. There has been no update for Northern Ireland at the time of publication, but the maximum rate operative in tax year 2019-20 was £547 per week. As soon as there are any further updates, the CIPP will advise members via News Online.

The employment protection daily rate figure will increase from £29 to £30 from the start of the new tax year in England, Wales and Scotland. No figure for tax year 2020-21 has been specified for Northern Ireland, but the figure for tax year 2019-20 was £29. Again, once further information is made available, members will be notified accordingly.

Employees are ordinarily entitled to statutory redundancy pay in situations where they have been working for an employer for two years or more. The amount of pay that a person is entitled to receive is partially based on their age, as follows:

  • Half a week’s pay for each full year that an employee was under 22 years old
  • One week’s pay for each full year that an employee was 22 or older, but under 41 years old
  • One and a half week’s pay for each full year that an employee was 41 or older

Length of service is capped at 20 years, and the maximum statutory compensatory award a person in England, Wales and Scotland can receive is increasing from £86,444 to £88,519 from 6 April 2020.
 


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