New compensation limits have been announced to come into effect from 6 April 2015. These are as follows:
- The limit on “a week’s pay” for the purpose of calculating statutory redundancy payments and basic awards for unfair dismissal claims will increase from £464 to £475;
- The maximum basic award for unfair dismissal tribunal claims/statutory redundancy payments will rise from £13,920 to £14,250; and
- The maximum compensatory award for unfair dismissal tribunal claims will increase from £76,574 to £78,335. The maximum award will be the lower of £78,335 or 52 weeks’ pay.
The new rates apply only where the relevant date complained of (for example, the dismissal or detriment) falls on or after 6 April 2015. If the relevant date falls prior to 6 April 2015, the old rates will apply irrespective of when the actual payment is made.
For further information, help or advice please contact Amy Sergison on 0191 211 7995.