Changes to Statutory Redundancy Pay Feb 2009

looks like i'll be joining the dole que next week as the company will go under, my company has no resorces left so the goverment will be paying redundancy pay but ive got a few questions if you could help.

ive been ther since 2001 and have 7 full years under my belt, but because of my age only entitled to 5 and a half weeks pay.

Is it right that the half a week pay age is now reduced from 22 to 21 years old

and

1st feb sees the cap raise from £330 a week max to £350, when the company goes under next week which amount would i be able to claim for ? as i should be able to claim pay in leui would this take any of the above into account

thanks
redun2

Thank you for your question although I am sorry to hear that your employer will be closing.

In answer to your question, the Government announced updates to the schedule used to calculate redundancy pay including an increase in the amount of a week’s pay for redundancy pay calculation purposes

This schedule has been updated to take account of the changes made as a result of it been unlawful to discriminate on the grounds of age. The upper age limit and lower age limits on redundancy have now been removed, and statutory redundancy is now calculated on the following basis:

Up to the age of 21 - 0.5 week’s pay for each full year of service

22 - 40 years of age - 1.0 week’s pay for each full year of service where age during year is 22 or above, but less than 41

41+ years of age - 1.5 weeks’ pay for each full year of service

The new figures will apply to any dismissal, statutory redundancy, and guarantee payment that arises on or after the 1st February 2009. So, if your dismissal takes place before the 1st February 2009, the old rates will continue to apply, irrespective of the date on which the compensation is awarded.

If you are paid in lieu of notice, your employment is brought to an end immediately so the effective date of termination for the purpose of redundancy payment is the last day that you work.

Please let me know if this helps. It would be good if you could keep us posted on the situation.

thanks for your reply thats cleared it up i read about the date change and thought that was the case. Company already in cva which they are calling them in next week to look at any possible routes to take but it is looking very doubtful so we should know by wednesday.

Im currently back at parents house after a split with partner so is the best thing to sign on to job seekers allowance? would there be any other benifits to recieve as £60 a week not very much to live on. My outgoings are 390 per month which doesnt include petrol or board/eating and all at minimum payments for credit cards car finance ect... I'll obviously ring all my creditors and explain the situation but im concerned they will demand full payments which i wont be able to meet and affect my credit report for future

thanks