Changes to compensation limits and pay rates from 6 April 2017

It’s that time of year again! There are a number of changes to compensation limits and pay rates which will be of interest to HR professionals.

Compensation limits

Revisions to compensation limits for certain tribunal awards and other statutory payments that take effect from 6 April 2017 are as follows:

Compensation limit Current figure From 6 April 2017

 

Maximum compensatory award for unfair dismissal £78,962 £80,541
Maximum limit on a weeks’ pay £479 £489
Minimum basic award for certain automatically unfair dismissals (dismissals for reasons of trade union membership or activities, health and safety duties, occupational pension scheme trustee duties or acting as an employee representative or workforce representative) £5,853 £5,970
Statutory redundancy payment/Unfair dismissal basic award: up to 30 weeks’ pay £14,370 £14,670

In cases involving dismissal, the new figures will apply where the effective date of termination falls on or after 6 April 2017. The current limits will remain in force where termination takes place before this date.

Change to maternity, paternity and adoption pay

The prescribed rate is changed every April. The prescribed weekly rate for SMP, SPP and SAP from 2 April 2017 is £140.98 (it was previously £139.58). This also applies to maternity allowance and shared parental pay.

Change to statutory sick pay

Statutory sick pay should be paid at the rate of £89.35 per week with effect from 6 April 2017 (the previous rate was £88.45 per week).

National minimum wage

Details of changes to the national minimum wage which took effect on 1 April 2017 can be found in our previous blog post here.

For more information on how these changes might affect you please contact the Devonshires Employment Team.

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