Chancellor Alistair Darling announced the government’s plan to raise the statutory redundancy pay from Ã‚Â£350 per week, to Ã‚Â£380 per week.
It’s still not clear when this measure will come into force, but Alistair Darling said these measures were necessary to help people being made redundant due to the recession.
While some unions voiced their disappointment over the government’s failure to accept their recommendations of raising the weekly amount to Ã‚Â£500, business groups such as the British Chamber of Commerce said the move was “reasonable”, and that the country could ill-afford the unions’ request.
Statutory redundancy pay provides a payment for employees with a minimum of two years’ service who are made redundant.
Statutory redundancy pay provides a guaranteed payment for employees with at least two years’ service who are made redundant. The amount is calculated in relation to the employee’s age, length of service and weekly pay.