From 6 April 2017, compensation limits and minimum awards payable are set to increase. Although the changes are implemented from 6 April 2017, they will only apply in cases where the relevant date for the claim falls on or after 6 April 2017. For example, an employee claiming unfair dismissal after being dismissed on 5 April 2017, will be limited to the current maximum award of compensation.
A week’s pay for certain calculations such as redundancy payments is capped at a maximum of £479 gross. This cap will increase to £489.
Guarantee pay will increase from £26 to £27 per day. This will affect laid off employees with no right to lay off contained within their employment contract.
Currently, the maximum award of compensation for an unfair dismissal claim is £78,963, which will rise to £80,541.
Cases that are considered automatically unfair by virtue of either health and safety, employee representative, trade union or occupational pension trustee reasons are entitled to a minimum basic award. This will increase from £5,853 to £5,970.
Please do not hesitate to get in touch if you require further information about any of these developments.