30th September 2009

INFORMATION
UPDATE

 Issue No.  2009/20

 Sentient
              

 

  STATUTORY RATES - CHANGES

REDUNDANCY PAY – NEW RATE w.e.f 1st October 2009
 
In our Information Update 2009/12 (17th June 2009) we reported on the change to the maximum weekly rate for Redundancy Pay.  
 
Traditionally the maximum weekly rate for Redundancy Pay has been increased each February, however, it was announced that:
 
1.      The maximum weekly rate will increase to £380.00 per week
2.      The increase will be effective from 1st October 2009.
 
The £380.00 rate will then be held until 1st February 2011.
 
Therefore we remind you that for any dismissal by reason of redundancy that takes place on or after 1st October 2009, the new maximum weekly rate will apply.
 
NATIONAL MINIMUM WAGE – NEW RATES w.e.f 1st October 2009
 
We remind you of our Information Update 2009/11 (14th May 2009) that the new National Minimum Wage rates applicable from 1st October 2009 is as follows:
 
 
NEW RATE
With Effect From
1st October 2009
For workers aged 22 and over
£5.80
For workers aged 18 to 21
£4.83
For workers aged 16 and 17
£3.57
 
Apprentices and National Minimum Wage
Whilst Apprentices under the age of 19 and older workers who are in the first year of their apprenticeship are exempt from the national minimum wage (NMW), those on a Learning & Skills Council apprenticeships are entitled to the minimum contractual payment specified by the Department for Business, Innovation and Skills.  This is £95 per week (effective from 1st August 2009) for a 35 hour week.
 
The Low Pay Commission is due to report to Government in February 2010 having considered whether to introduce a NMW for apprentices and if applicable what would be the appropriate rate; whether the rate should vary according to age, and at what levels of apprenticeship the rate should apply and for how long.
 
As usual we will keep you posted in future updates.
 
If you have any queries on how the above might affect your organisation please do not hesitate to contact us. 08456 446006.
 
Things are changing fast in many areas of Employment Law at the moment and this will result in a slightly higher frequency of updates than normal - all sent with the motive to keep you informed of course.

 

 

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