New compensation limits announced for employment claims

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New compensation limits have been announced to come into effect from 6 April 2015. These are as follows:

  1. 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;
  2. The maximum basic award for unfair dismissal tribunal claims/statutory redundancy payments will rise from £13,920 to £14,250; and
  3. 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.