Increase in Compensation Limits for some Employment Law Claims
- AuthorElizabeth Kirkham
Compensation Limits for employment law claims may be changing in some instances. These increases came into effect in April 2019.
In some employment law claims, the employee's weekly pay needs to be calculated in order to calculate the amount of any award payable to an employee. There is a statutory limit for the maximum week's pay which is reviewed annually and any amendment takes effect from 6 April that year.
As of 6 April 2019, The Employment Rights (Increase of Limits) Order 2019, increased the maximum weekly pay from £508.00 to £525.00.
Due to this increase, the maximum award for statutory redundancy pay will increase from £15,240.00 to £15,750.00.
The rise in the maximum weekly pay also affects the maximum compensatory award in an unfair dismissal claim. As of 6 April 2019, the maximum compensation that can be awarded is the lower of £86,444.00 (previously £83,682.00) or 52 weeks' gross pay for that employee.
The increased rates only apply to events that happen on or after 6 April 2019. If the event happened prior to that date, the previous rates will apply, irrespective of when any claim was lodged.
If you have any questions why not call the Employment and Dispute Resolution Team on 01522 781462 or email email@example.com.