The Employment Rights (Increase of Limits) Order 2015 has been laid before
Parliament and will come into force from 6 April 2015. The Order increases the limits applying to certain awards of employment tribunals and to other amounts payable under employment legislation. The main changes are:
- Maximum amount of a ‘week’s pay’ for the purpose of calculating a redundancy payment or the basic or additional award of compensation for unfair dismissal or payments to employees in the event
of insolvency – increases from £464 to £475.
- Limit on the amount of compensatory award for unfair dismissal – increases from £76,574 to £78,335 (there is an additional cap of one year’s salary on the compensatory award for unfair dismissal).
- Limit on the daily amount of statutory guarantee payment – increases from £25.00 to
£26.00.
The increases apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6 April 2015. The date is determined differently depending on the type of claim brought. In unfair dismissal claims, this date is the effective date of termination of employment. In guarantee payment claims, it is the day in respect of which the payment is due.The increases reflect
an increase of 2.3% in the retail prices index from September 2013 to September 2014.
If you have any questions or concerns regarding redundancy or employment law please send us an email and our hot-shot employment specialist will get in touch.
Noel
Guilford