The Employment Rights (Increase of Limits) Order 2014 (the Order) has been published and comes into force on 6 April 2014.
The Order introduces the following key changes:
- The maximum compensatory award for unfair dismissal increases from £74,200 to £76,574, subject to the limit of one year’s pay which came into force on 29 July 2013.
- The limit on a week’s pay for the purposes of calculating statutory redundancy and the basic award for unfair dismissal increases from £450 to £464.
- Guarantee pay increases from the rate of £24.20 to £25.
- The minimum basic award where the dismissal was unfair because of health and safety, employee representative, trade union or occupational pension trustee reasons increases from £5,500 to £5,676.
These new rates apply to claims where the events giving rise to the compensation occurs on or after 6 April. The date on which the award is ordered is irrelevant.