compensation increase

Compensation limits and minimum awards that are payable under employment legislation are to increase from 6th April 2017.

The main changes are:

  • The maximum limit on the compensatory award in an unfair dismissal claim will increase from £78,962 to £80,541.
  • The limit on a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for an unfair dismissal claim, will increase from £479 to £489.

The new rates take effect where the “appropriate date” for the cause of action (such as the date of termination) falls on or after 6th April 2017. Where the appropriate date falls before 6th April, the old limits will still apply, irrespective of the date on which compensation is awarded.


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