New compensation limits in force from 6 April 2017

News Article

From 6 April 2017, the following changes took effect:

  • An increase to the limit of compensation for unfair dismissal from £78,962 to £80,541.  This is still subject to the limit of compensation being whichever is the lower of the employee’s salary or this figure.
  • The limit on a week’s pay for the purpose of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £479 to £489.
  • The minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union or occupational trustee reasons will increase from £5,853 to £5,970.

The new rates apply where the appropriate date for the cause of action such as the date of termination in an unfair dismissal claim fell on or after 6 April 2017. Where the appropriate date fell before 6 April, the old limits will still apply, irrespective of the date on which compensation is awarded.

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Susan Bernstein
Partner - Employment
Posted in Employment Law Update.