The Employment Rights (Increase of Limits) Order 2014 SI 2014/382 has been published. The order will increase the limits on certain employment tribunal awards and other amounts payable under employment legislation from 6 April 2014.
The main changes are:
- The maximum compensatory award for unfair dismissal will rise from £74,200 to £76,574.
- The maximum amount of a week’s pay used to calculate redundancy payments or various awards including the basic or additional award of compensation for unfair dismissal, will increase from £450 to £464.
- The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £5,500 to £5,676.
The new rates apply where the event giving rise to compensation or payment occurs on or after 6 April 2014. Therefore, in cases involving dismissal, the new figures will apply where the effective date of termination falls on or after 6 April 2014.
However, you should note that the compensatory award is also subject to a further cap of 12 months’ pay. So, as of 6 April, the maximum compensatory award will be the lower of £76, 574 or 12 months’ pay. These caps do not apply where the dismissal is for discriminatory reasons or where the dismissal was due to whistleblowing or for raising certain health and safety issues.
For more information on this please contact us on 01483 303636.
Helen Philips, Solicitor, Just Employment Solicitors & Advocates.