Statutory Payment Increase Query

mikee31

I read in the MSE Redundancy Help Guide that;

A ‘week’s pay’ can legally be capped at £350, so even if you earn more, you aren’t entitled to it under the statutory payment.
You may have heard the £350 weekly limit was increased to £380 in the Apr 09 Budget, yet it will not apply until 1 October 09. Anyone made redundant after this date will be eligible for the increased amount though.

Another round of redundancies have just been announced at the company I have worked for for the past 9 and a half years. The 30 day consultation period is due to finish on the 22nd September when those being made redundant will be notified.

This date therefore 'perhaps conveniently' falls just before the statutory amount is increased. Most people would then have to work a months notice (although last time most were let go almost immediately so that they could find work, etc). Luckily I am in a better position than most and have a 3 month notice period.

My query is to whether the date of notification (pre-1st October) would determine whether the statutory amount is £350 or whether it would be the last official day at the end of the notice period (post-1st October) when the amount would be £380.

In addition, is it the company which pays statutory pay or the government (sorry if this is a dumb question!)?

Any help appreciated.

getmore4less

The company pays the bill.

Not sure on the legal status but paying PILON and the lower rate would be financialy detrimental so they should consider the higher rate for those that have notice that would take them past the date.

Might depend on the contract and what is says about PILON.

hells_2

I thought the higher amount was if you'd had 15 or more years service???