Increase redundancy and tribunal costs
From 1 February 2013 it will become more expensive to make an employee redundant as the statutory cap for a week's pay is increased from £430 to £450. This means that the maximum redundancy payment will be increased to £13,500 for a long serving employee.
In addition, from the same date, the maximum amount a tribunal can award an employee in terms of compensation is increased from £72,300 to £74,200. This figure is on top of the basic award which is calculated in the same way as a statutory redundancy payment. Therefore, a long serving employee who is successful in the employment tribunal could now be entitled to a total of £87,700.
This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.