24th December 2008


 Issue No.  2008/24




The main increases that come into force on 1st February 2009 are:
Guarantee Payment
  • Guarantee Pay daily rate increases from £20.40 to £21.50
This guarantee payment is only paid for a limited period during a period of lay off and the new rate will apply when an employee has been laid off after 1st February 2009.
Unfair Dismissal Compensation and “a week’s pay”
  • maximum compensatory award for Unfair Dismissal to rise from £63,000 to £66,200
  • maximum on a 'week's pay' for redundancy pay calculation to increase from £330 to £350
These figures will apply to dismissals effected after 1st February 2009.
The main increases that come into force on 6th April 2009 are:
The Government has announced that from 6th April 2009, (subject to parliamentary approval) the revised rates for the following allowances will be as follows:
  • Statutory Sick Pay increases from £75.40 to £79.15 per week
  • Statutory Maternity/Adoption/Paternity Pay increases from £117.18 to £123.06 per week
From 5th April 2009 employers who do not qualify for Small Employer's Relief (SER) can recover 92 per cent of the SMP/SAP/SPP paid to their employees.
Employers who do qualify for SER can recover 100 per cent of the SMP/SPP/SAP paid to their employees plus 4.5 per cent compensation.
For the 2009-2010 tax year a 'small employer' is an employer who paid (or was liable to pay) total gross Class 1 NICs of £45,000 or less in the individual employee's qualifying tax year. Unsuprisingly these have not been similarly increased and are the same thresholds as last year.

Can we take this opportunity to wish you all a Merry Christmas and a Prosperous New Year




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