Statutory redundancy payment limit increased

The maximum value of a week’s pay for the purposes of calculating a statutory redundancy payment (SRP) increased by £30 to £430 from 1 February 2012.

Under the Employment Rights Act 1996, the weekly SRP limit is used to calculate a range of other employment-related compensation payments, including basic and additional awards for unfair dismissal.

The increase will apply to any dismissal on grounds of redundancy which occurs on or after 1 February 2012. Detailed advice on how to calculate a SRP – and use of the limit on a week’s pay in undertaking the calculation – is contained in Chapter 5 of  B&ES Guide to Employment.