As of 6 April 2017, higher limits will apply to various compensation awards payable under employment legislation.
At the start of each new financial year, the limits applicable to various Employment Tribunal awards are increased. The two most important changes this year are as follows:
- the limit on the compensatory award for unfair dismissal claims will rise from £78,962 to £80,541; and
- the limit on a week's pay (which features in the calculations of redundancy payments and basic awards for unfair dismissal claims, among other things) will increase from £479 to £489.
It is important to note that the new rates will apply to cases where the liability arises after 6 April 2017. This means that people who are unfairly dismissed or made redundant after that date can enjoy the higher limits, but those dismissed before then will have the lower 2016/2017 rate applied to them regardless of when their award of compensation is made.
The Employment Rights (Increase of Limits) Order 2017 SI 2017/175
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.