New rates for statutory redundancy calculation and unfair dismissal compensation
The Employment Rights (Increase of Limits) Order 2015 will come into force 6th April 2015. This Order increases the limits on compensation for a variety of employment law claims.
One key change is that the maximum amount of a week’s pay for the purposes of calculating statutory redundancy payments and the ‘basic award’ for unfair dismissal will increase from £464 to £475. A second key change there will be an increase of the maximum compensation that can be awarded in respect of the ‘compensatory award’ for unfair dismissal from £76,574 to £78,335. Please note that the ‘compensatory award’ for unfair dismissal is already subject to a cap which means that an employee can be awarded no more than a sum equivalent to the employee’s annual gross salary. Therefore this latter increase will only benefit employees with a salary of over £76,574.
These new rates will apply to dismissals which occur on or after the 6th April 2015.
For further information please contact us.
James Haley, Director and Solicitor at Just Employment Ltd