Employment lawyers are inundated with work at present, given the huge numbers of redundancies in the UK. The rules can be complex and many companies end up in front of employment tribunals when they do not follow proper procedures or unfairly pick someone for redundancy.
From 1st February 2009, there are new compensatory rates for unfair dismissal cases.
The new limits are as follows:
- compensatory award: increased from £63,000 to £66,200 (the most that can be paid for unfair dismissal unless there has been discrimination)
- a ‘week’s pay’: £330 to £350
- maximum redundancy payment: £9,900 to £10,500
Separately, in Stringer v HMRC, the European Court has confirmed that employees can accrue their statutory holiday entitlement throughout their sickness absence and their entitlement can be rolled over to another holiday year. They are also entitled to be paid for any unused holiday if they are dismissed. Most employers already do this but it is wise to take note of this clarification.