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Employment Rights Act - increase in maximum amount of a week’s pay from 1 October 2009

With effect from 1 October 2009, the maximum amount of a week’s pay for the purposes of calculating payments under the insolvency (and other) provisions of the Employment Rights Act 1996 is increased from £350 to £380.

The new rate also applies to the calculation of entitlement to redundancy payments.

The regular annual increase in February has been suspended for 2010, so the next increase in a week’s pay is now due in February 2011.

Caroline Stark is a senior manager at Mercer & Hole. The views given in this blog are personal to the author.




Date: 1st October, 2009
Author: Caroline Stark


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