Employment rates and limits are updated annually and this year brings some important changes, some of which are mentioned below.
National minimum wage
As of 1 April 2024, the national living wage for workers aged 21 and over increases from £10.42 per hour to £11.44 per hour.
The standard minimum wage rate for younger workers aged 18 to 20 rises from £7.49 to £8.60 per hour.
National Minimum Wage now also applies to domestic workers such as nannies and au pairs.
Compensation in the employment tribunal
As of 6 April 2024, the limit for compensation that can be awarded for unfair dismissal increases to £115,115, which is up from last year's £105,707.
The limit on a week's pay used for calculating statutory redundancy pay and the unfair dismissal basic award has also been increased from £643 to £700.
The Vento Scale provides guidance in relation to how a claim for injury to feelings is to be valued. These compensation bands also saw an increase as follows:
I. The lower band now attracts an award between £1,200 and £11,700 (increasing from £1,100 to £11,200) for less serious cases.
II. The middle band now attracts an award between £11,700 and £35,200 (increasing from £11,200 to £33,700) for cases which do not merit an award in the upper band.
III. The upper band now attracts an award between £35,200 and £58,700 (increasing from £33,700 to £56,200) for the most serious cases.
Amounts in excess of £58,700 can be awarded but only in the most exceptional cases.
Statutory payments
As of 8 April 2024, statutory payments have been increased. Statutory maternity, adoption, paternity, shared parental and parental bereavement pay has increased from £172.48 to £184.03 per week.
Statutory sick pay also rises from £109.40 to £116.75 per week.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.