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21st February, 2018
The Employment Rights (Increase of Limits) Order 2018 will increase the compensation and weekly pay limits that are payable from 6 April 2018.
The Employment Rights (Increase of Limits) Order 2018 will bring in the following increases:
• The maximum Unfair Dismissal “Compensatory Award” will rise from £80,541 to £83,682;
• The limit on a week's pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal, will increase from £489 to £508;
• Guarantee pay will increase from £27 to £28 per day;
• The minimum Basic Award for Unfair Dismissal, in cases where a dismissal is unfair in certain cases due to health and safety, employee representative, trade union, or occupational pension trustee reasons, will increase from £5,970 to £6,203.
The new rates take effect where the 'appropriate date' for the claim (such as the date of termination in an unfair dismissal claim) is on or after 6 April 2018.
Where the appropriate date is before 6 April 2018, the old limits will still apply, even if compensation is awarded after 6 April.
Nicola Butterworth comments:
“The increased compensation limits represent the usual annual increase. With the ever increasing number of tribunal claims employers should ensure they have appropriate policies, procedures and training in place to minimise the risk of a claim. If you require any assistance please contact a member of the team.”