Effective 1st October 2009, the National Minimum Wage payments have increased to:

- The rate for 16-17 year olds has increased from £3.53 to £3.57 per hour;
- The rate for 18 - 21 year olds has increased from £4.77 per hour to £4.83 per hour; and
-  The main rate for those aged 22 or more will increase from the current £5.73 per hour to £5.80 per hour;

Weekly Pay Award Changes

With effect from 1st October 2009, the limit on a week’s pay for calculating certain awards increased from £350 to £380.

This increase applies to the basic award in unfair dismissal cases and when calculating a statutory redundancy payment where the dismissal has taken effect on or after 1st October 2009.

It also applies to a variety of other awards based on a week’s pay, where the triggering event occurs on or after 1st October 2009. These include (with the triggering event in brackets):

- compensation for failing to comply with flexible working procedures (based on the date of the failure in relation to the application or of the decision to reject the application);

- additional awards in unfair dismissal cases (based on when the order for reinstatement or re-engagement should have been complied with);

- compensation for failure, or threatened failure, to allow someone the right to be accompanied at a disciplinary or grievance hearing (based on the date of the failure or threat);

- compensation for failure to give an employee a written statement of initial employment particulars or of particulars of change (based on the date the relevant proceedings began); and

- compensation for failure to notify an employee of the date on which it intends the employee to retire or of the right to make a request not to retire on the intended date (based on the date of the failure).

Because this increase is taking place in October, the rate will not go up again on an index-linked basis on 1st February 2010 as it would normally have done.

For further information on the above, or any other aspect of employment law, please contact do not hesitate to contact us.