New compensation limits announced

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.

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This entry was posted in Devonshires, employment, employment law, UK employment. Bookmark the permalink.

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