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New compensation limits in force from 6 April
24th February, 2017 by Alex Payton
NEWS
An increase to compensation and redundancy payments will come into force on 6 April 2017. The increased rates will apply to any relevant events occurring on or after 6 April 2017. The current rates will apply to any matters arising before that date.
DETAILS
The Employment Rights (Increase of Limits) Order 2017 comes into force on 6 April 2017. The new compensation limits are as follows:
- The cap on a statutory week's pay will increase to £489 (from £479).
- The maximum Basic Award for unfair dismissal will rise from £14,370 to £14,670.
- Statutory Redundancy Payments will be capped at a maximum of £14,670.
- Compensatory Awards for unfair dismissal will increase to a maximum of £80,541 (from £78,962) or a year's gross pay, whichever is lower.
The increases reflect the increase in the retail prices index of 2.0% from September 2015 to September 2016.
COMMENT
Alex Payton comments: "Employers should ensure that the changes are taken into account from 6 April, particularly those anticipating redundancies or dismissals. Howes Percival will shortly be producing our popular facts and figures document containing all the up-to-date statutory rates and payments as well as details of qualifying periods for employment rights".
If you require any further information on the above or assistance with any of your compliance projects, please contact a member of the team.
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