Empey announces increase in limits for redundancy payments

Employment Minister Sir Reg Empey today announced that, from 1 October 2009, redundancy payments will be based on a higher weekly wage limit.

The limit on the maximum amount of ‘a week’s pay’, for the purpose of calculating redundancy payment, will rise from £350 to £380.

Making the announcement, the Minister said: “The increased limit of ‘a week’s pay’ relates to a range of employment rights including statutory redundancy pay, various awards and compensation made by industrial tribunals and other amounts payable by the Department under employment legislation where an employer is insolvent.

“Whilst being made redundant is a devastating blow, I hope that these new limits will benefit those who need it most.”

The Order also excludes, on this single occasion, the operation of Article 33 of the Employment Relations (Northern Ireland) Order 1999, in relation to the sums covered by this Order. Therefore the sums will not increase (or decrease) in line with the retail prices index for September 2009, in February 2010.

Notes to Editors:

1. The new limits reflect corresponding changes introduced in GB on 1 October 2009.
2. The changes being made involve no changes to the structure of awards and other payments, or to employers’ management systems.
3. This limit is also used to calculate certain awards made by industrial tribunals and other amounts payable by the Department under employment legislation where an employer is insolvent.
4. Printed copies of the Order are available from The Stationery Office, 16 Arthur Street, Belfast. The Order can also be viewed online at http://www.opsi.gov.uk/sr/sr2009/nisr_20090317_en_1
5. All media queries should be directed to the Department for Employment and Learning Communications Branch on 028 9025 7872. Out of office hours please contact the duty press officer via pager number 07699 715 440 and your call will be returned.