Industry

News and information from the Cleaning and Support Services Association

February 2010 Changes to the Compensatory Awards & Guarantee Pay
Released on 02/03/2010
Author Croner Consulting

February 2010 Changes to the Compensatory Awards & Guarantee Pay

For the first time ever, the maximum limit on the compensatory award for unfair dismissal claims will decrease from 1st February 2010 from £66,200 to the new limit of £65,300.

 

The limit has been reduced because of a fall in the retail prices index (RPI). The limit is based upon September’s RPI by comparison with the index for September in the previous year.

 

The limit on the amount of guarantee pay payable to an employee in respect of any day also decreases from £21.50 to £21.20. The guarantee payment is paid to an employee when a whole working day is lost and unpaid, when he or she would normally work. Instead of the normal rate of pay, the employee is entitled to be paid at the current rate of guarantee pay for the first five days of lay off in any three-month period.

 

April 2010 increases to Statutory Payments

Employers who operate their own payroll need to keep an eye on the April changes every year when the increases to statutory payments, such as Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay come in.

 

Although, technically, still subject to parliamentary approval, the following rates to pay from April 2010 were recently announced.

 

v       Statutory Sick Pay will remain unchanged from 6th April 2010 at £79.15 per week.

 

v       Statutory Maternity Pay is six weeks’ pay at 90% of the employee’s average weekly earnings followed by a further 33 weeks’ pay at £124.88 per week or 90% of average weekly earnings, whichever is lower.

 

v       Statutory Paternity pay is £124.88 per week or 90% of average weekly earnings, whichever is lower. An employee can take one or two weeks. If taking two weeks’ leave, they must be taken together.

 

v       Statutory Adoption Pay is 39 weeks’ pay at £124.88 per week or 90% of weekly earnings, whichever is lower.

 

For employees earning £97 or more per week in 2010-11, the above rate of Statutory Sick Pay will apply from 6th April 2010. For Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay, the above rates will apply for complete pay weeks beginning on or after 4th April 2010.

Back

Attached documents