Logo

28/02/2014

Employment compensation on the increase

CODE: Green

The Employment Rights (Increase of Limits) Order 2014 has been published confirming increases in statutory compensation limits. The current limits have been increased to reflect the 3.2% increase in RPI. Some of the main changes are as follows:

1. the maximum compensatory award for unfair dismissal will increase from £74,200 to £76,574  (or 52 weeks’ pay, whichever is the lower figure); and

2. the maximum amount of ‘one week’s pay’ for the purpose of calculating employment awards, such as statutory redundancy payments, will increase from £450 to £464.

The new rates will apply where the event giving rise to compensation occurs on or after 6 April 2014. For example, in the case of a redundancy, if the effective date of termination is prior to 6 April 2014 then the old rates will apply; if it is on or after 6 April 2014 then the new rates will apply.

For further information contact the employment team on 01737 854 500 or email [email protected]

 


Back to listing
Print Share
Related articles

Insights - 19/05/2022

Unfair Dismissal - A Case Study

Insights - 28/01/2022

Work and the Coronavirus Vaccine

Insights - 01/10/2021

Now furlough has ended…