Compensation limits increase

Published on: 22/02/2018

#Employment Tribunals

It’s that time of year where compensation limits for claims such as unfair dismissal and for statutory redundancy payments are reviewed. The changes have effect from the 6 April 2018 and include the following:

  • A week’s pay will increase from £489 to £508. This is used to determine the basic award for unfair dismissal claims and for calculating statutory redundancy payments.
  • The compensatory award for unfair dismal is currently the lower of 52 weeks’ gross pay or the sum of £80,541. However, this latter figure will increase to £83,682.
  • The minimum basic award for unfair dismissal in health and safety, employee representative, trade union and occupational pension trustee cases will increase from £5,970 to £6,203.

The new rates apply where the event giving rise to compensation or payment occurs on or after 6 April 2018. Where the relevant event falls before this date, the previous limits will still apply.

Clarkslegal
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