The weekly maximum pay which can be taken into account when calculating statutory redundancy pay is set to increase from 1st October 2009.

Employees who have at least two years continuous service qualify for a redundancy payment.

A weeks pay is that to which the employee is entitled under his or her terms of contract. The maximum statutory limit will increase from £ 350 to £380 with effect from 1st October.

The maxium weeks pay figure is generally reviewed annually however the £380 limit will continue until 1st February 2011. Employers may, of course, pay in excess of the statutory minimum.