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New Compensation Limits from 6 April 2019
6th March, 2019 by Alex Payton
The Employment Rights (Increase of Limits) Order 2019 will increase the compensation and weekly pay limits that are payable from 6 April 2019.
The Employment Rights (Increase of Limits) Order 2019 will bring in the following increases:
- The maximum Unfair Dismissal “Compensatory Award” will rise from £83,682 to £86,444;
- 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 £508 to £525;
- Guarantee pay will increase from £28 to £29 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 £6,203 to £6,408.
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 2019.
Where the appropriate date is before 6 April 2019, the old limits will still apply, even if compensation is awarded after 6 April.
Alex Payton 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.”