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

New compensation limits published for April 2019

The government has published the Employment Rights (Increase of Limits) Order 2019 which increases compensation limits for employees in various situations, applicable from 6 April 2019.

The main changes are:

  • The compensatory award for unfair dismissal has been increased from £83,682 to £86,444;
  • The minimum basic award for unfair dismissal in certain situations has been increased from £6,203 to £6,408; and
  • A ‘week’s pay’ (relevant for statutory redundancy calculations among other calculations) has increased from £508 to £525.

Perhaps the most important change for employers is the increase in a week’s pay for redundancy and other similar calculations. Those making employees redundant after 6 April 2019 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.