Employment compensation on the increase

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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]


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