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January 27, 2010

Compensation Limit Falls but Other Statutory Payments Rise in 2010

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The Secretary of State for Work and Pensions has announced the proposed rates of various statutory payments for 2010. The Government has also published the Employment Rights (Revision of Limits) Order 2009, which has resulted in, among other things, a reduction in the maximum compensatory award limit for unfair dismissal.

From 1 February 2010, the maximum compensatory award drops from £66,200 to £65,300. A week's pay (for basic award and redundancy pay purposes) remains the same at £380 until February 2011 at the earliest.

The Secretary of State for Work and Pensions proposed that the earnings threshold for statutory adoption, maternity, paternity and sick pay would rise from £95 to £97 per week. Statutory adoption, maternity and paternity pay and Maternity Allowance will all rise from £123.06 to £124.88, but statutory sick pay will remain at £79.15. It is expected that these changes will come into effect in April 2010.

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