New Compensation Limits
The Employment Rights (Increase of Limits) Order 2018 SI 2018/194 has been made. The Order will come into force from 6 April 2018 and will increase the payments made under employment legislation.
The most notable increases are that the limit on the basic award in a claim for unfair dismissal will increase from £14,670 to £15,240. The limit on the compensatory award for unfair dismissal will increase from £80,541 to £83,682 and the limit on a weeks pay for the purposes of calculating a statutory redundancy payment and basic award will increase from £489 to £508.
There are a raft of other increases which are set out in the Schedule to the Order and can be seen at
The new rates will come into effect on 6 April 2018 and which rate is applicable will depend on when the ‘appropriate date’ takes place. So, for claims of unfair dismissal where the dismissal date falls before the 6 April 2018, the old rates will still apply. However, for dismissals that fall on or after 6 April 2018 the new rates will apply.
Surprisingly we often see clients who receive incorrect payments based on outdated limits on a weeks pay. Therefore, if you are in the position of being made redundant or pursuing a claim in the Employment Tribunal, it is always best to check your entitlements to ensure you are receiving the correct payment. For employees with long service, the difference in limits can be important.
If you have any employment law problems, we can help. Please call on 01522 539501 or 01522 568410 for a free initial telephone consultation or visit our website lincslaw.co.uk for more information about the services we provide.