The following changes to employment law came into force on 1 October 2009:

  • The ceiling on a week's pay used to calculate statutory redundancy pay and other relevant statutory compensation increases from £350 to £380. The maximum unfair dismissal basic award therefore increases from £10,500 to £11,400. The usual February increase to this cap will not be made in 2010.


  • The national minimum wage rate increases to £5.80 per hour for workers aged 22 and over, £4.83 for workers aged 18-21, and £3.57 for workers aged 16 and 17. The adult rate will be extended to 21-year olds from October 2010. Employers are now prohibited from counting service charges and tips towards the national minimum wage, whether or not they are processed through payroll.