The Employment Rights (Increase of Limits) Order 2021 published
02 March 2021
The Employment Rights (Increase of Limits) Order 2021 has been laid before parliament, and the maximum statutory weekly redundancy pay figure will increase from £538 to £544 from 6 April 2021.
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 2020-21 was £560 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 remain at £30, the same as the previous tax year in England, Wales and Scotland. No figure for tax year 2021-22 has been specified for Northern Ireland, but the figure for tax year 2020-21 was £30. 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 £88,519 to £89,938 from 6 April 2021.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.