The Secretary of State for Work and Pensions has proposed rates of various statutory payments for 2010 including a revision downwards of the maximum compensatory award for unfair dismissal. This reflects the decrease of 1.4% in the retail prices index from September 2008 to September 2009. The limit will fall from £66,200 to £65,300.

However, the earnings threshold for statutory adoption, paternity pay and maternity allowance is to 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.

Simon Thomas, partner specialising in employment law regularly advises employers and employees in relation to entitlement to these payments and he can be contacted on simon.thomas@hutchinsonthomas.com or 01639 640164