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EMPLOYMENT LAW UPDATES
New compensation limits from 1 February 2010
On 1 February 2010 the compensation limit will be reduced from £66,200 to £65,300 for cases that do not involve discrimination. The upper limit on a week's pay (and other payments that are based on a week's pay, such as statutory redundancy pay) is unaffected, as this figure was increased in October 2009 to £380 and will not change again until February 2011.
The Right to a Fair Trial includes the right to legal representation.
The Court of Appeal has handed down its decision in G v X School, in which it was decided that Article 6 ECHR requires that a employee working in the public sector should be afforded an opportunity to be legally represented at a disciplinary/appeal hearing where it was determinative of a right to practice a profession.
The Insolvent Employer
Where an employer refuses to pay redundancy and notice pay (in whole or part) or cannot pay because of insolvency, the employee has the option of applying to the Secretary or State, via the Redundancy Payments Office, for payment out of the National Insurance Fund. Any dispute over a claim may result in the matter being referred to an Employment Tribunal. The employee can apply for payment of the following payments by completing Form RP1 (the amounts valid as at 1 October 2009):
• Up to eight weeks’ arrears of pay (up to the current maximum statutory limit on a week’s pay, which is £380) less basic rate tax and National Insurance contributions. Arrears of pay may include guarantee payments; payment for time off for carrying out trade union duties; remuneration on suspension on medical grounds or on maternity grounds; and remuneration under a protective award. The full protective award amounts to thirteen weeks pay. However, the full protective award is not recoverable from the Redundancy Payments Office as it is subject to the overall limit of eight weeks' pay and the statutory cap on each week's pay.
• Up to six weeks holiday pay which accrued in the twelve months prior to the date of insolvency. Each week’s pay is subject to the same statutory limit.
• Statutory notice pay up to the current maximum of twelve weeks’ pay, subject to the statutory cap on each weeks’ pay. The employee will however be required to mitigate his loss by seeking alternative employment or applying for the appropriate benefits. • Statutory redundancy payments.
• The basic award element of any award from an Employment Tribunal.
For further information please contact our Employment Team or alternatively you can find further information at www.insolvency.gov.uk