Tough Times Ahead?
'Tough Times' might be synonymous with job cuts but there are a host of other ways to reduce employment costs without resorting to redundancies. We'll be featuring our top tips - which are relevant for all organisations whatever their circumstances - in our February newsletter. If you can't wait, give us a call on 01494 451 681.
Meanwhile, if you are contemplating redundancies give us a ring. There are some legal requirements to comply with - for example the need to select fairly, to consult and to follow the statutory dismissal procedure. There are also right and wrong ways to manage what you might need to do that will influence the future well-being of your organisation.
For better or worse this is an area we have a lot of experience with. Anyone of our consulting team can help but if you are not already a client, call Stuart on 01404 42359, Mark on 01743 245564 or Lynne on 01494 455073.
Increases to Statutory Rates:
February: Increase in Tribunal Limits and Calculation of Weekly Wage
With effect from the 1st February the compensatory award for unfair dismissal will rise to £63,000 (from £60,600). At the same time the limit on a week's pay (used to calculate statutory redundancy payments will go up from £310 to £330.
This means that the maximum basic award for unfair dismissal and the maximum statutory redundancy payment will rise to £9900 (from £9300).
April: Increase in SMP, SAP and SPP
With effect from the 7th April the weekly rate of SMP, SAP and SPP will rise to £117.18 (from £112.75). Statutory sick pay will increase £75.40 (from £72.55) per week.
Inflation and Pay
Inflation - As many organisations start to think about 2008 pay reviews it is worth noting some key current inflation statistics. It might be question of choosing which one best suits your purposes!
As reported by the Government in December:
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The headline rate of inflation - the all-items retail prices index (RPI) - was 4%.
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The underlying inflation - the RPI excluding mortgage interest payments (RPIX) - was 3.1%.
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The consumer prices index (CPI) rose by 2.1%.
Meanwhile IRS is reporting that pay settlements in the last quarter of 2007 averaged 3.7%.
For more information on pay trends contact Mark
mark@hradvantage.co.uk or
