Copyright Moore Barlow LLP (Moore Blatch and Barlow Robbins merged May 2020)

New compensation limits published for April 2017

Coming into force on 6 April 2017, the government has published the Employment Rights (Increase of Limits) Order 2017 which increases compensation limits for employees in various situations.

The main changes are:

  • The compensatory award for unfair dismissal has been increased from £78,962 to £80,541;  

  • The minimum basic award for unfair dismissal in certain situations has been increased from £5,853 to £5,970; and

  • A ‘week’s pay’ (relevant for statutory redundancy calculations among other calculations) has increased from £479 to £489.

The change that is perhaps most important for employers is the increase in a week’s pay for redundancy and other similar calculations. Those making employees redundant after 6 April 2017 should take the increase into account when calculating the necessary statutory redundancy payments.

If you have any queries about statutory redundancy payments or the increases in compensation, please do not hesitate to contact a member of our team. 

As a reminder details of other changes coming into effect next month can be found in our article Key employment law changes expected in 2017.