Recent developments in Employment Law

Statutory Redundancy Pay

The Government has announced that the weekly limit to calculate Statutory Redundancy Pay will increase from £350 to £380 with effect from 1st October 2009.

National Minimum Wage

It is proposed that as of October 2009 the National Minimum Wage (for adults aged 22 and over) will increase from £5.73 per hour to £5.80. There are proposals for increases in the applicable rates for 18-21 year olds and 16 and 17 year olds respectively.

Changes to how National Minimum Wage can be paid

A recent Court of Appeal decision has determined that employers’ are required to pay employees’ at least the National Minimum Wage without taking into account service charges, tips, gratuities or cover charges.

Current issues

As the economic downturn continues we are frequently being asked by employers for ways of saving costs. One such measure we have recently advised upon which is applicable to hourly paid staff is a Lay off provision which is inserted into the employees contracts of employment and can be exercised when there is insufficient work available. During the period of Lay off employees do not receive usual salary but instead could receive £107.50 in a three month period.

For the Future

The Equality Bill is likely to be implemented in 2010. Its aim is twofold to harmonise current discrimination legislation and strengthen it.

It is likely that employers will have to consider amending current equal opportunities policies.


If you would like to discuss these or any other Employment Law issues please contact Paul Edwards