Increase in UK Employment Compensation Limits

more+
less-

The maximum compensation that the Employment Tribunal can award for “ordinary” unfair dismissal claims will increase from 6 April 2014, as will the weekly wage figure for calculating statutory redundancy payments.

The Employment Rights (Increase of Limits) Order 2014 will come into force on 6 April 2014. As a result, for dismissals in respect of which the effective date of termination falls on or after 6 April 2014:

  • a week’s pay (for the purposes of calculating the basic award in unfair dismissal cases and statutory redundancy payments) will be capped at £464 – the current limit is £450; and
  • the maximum compensatory award for unfair dismissal will be capped at £76,564 – the current limit is £74,200. Since July 2013 there has also been a separate cap of one year’s salary on unfair dismissal awards.

Various other statutory compensation limits are also increased from April 2014. Further details are available in The Employment Rights (Increase of Limits) Order 2014.

Written by:

Published In:

UK

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dechert LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×