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Maximum Awards and Statutory Payments Increase

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Maximum Awards and Statutory Payments Increase


The maximum awards for unfair dismissal and the amount of a week’s pay for statutory purposes will increase where the effective date of termination falls on or after 6th April 2016. 

 

New rates:

  • Max. compensatory award for unfair dismissal – £78,962 (currently from £78335)

  • Max. limit on a week’s pay – £479 (currently £475)

  • Hence the changes also mean the max. unfair dismissal Basic award and max. statutory redundancy pay (30 weeks) will be £14,370 (currently £14,250)

 

There will be also an increase in the minimum basic award for specific limited unfair dismissals (including dismissals relating to trade union membership or activities, health and safety duties and acting as an employee representative). 

 

  • Min. basic award for specific unfair dismissals - £5,853.00 (currently £5,807.00)

 

Thankfully the increases are relatively small but serve as a reminder to all employers of the potential financial impact should things go wrong with the employment relationship.
 
If you are thinking of terminating an employee in the near future and would like to discuss it first to avoid any costly mistakes then please get in touch.


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