Gary Henderson

Gary Henderson

Partner

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23 February 2017

Tribunal awards and statutory redundancy pay - annual increases take effect on 6 April 2017

The annual increases in the limits on certain employment tribunal awards and other amounts payable under employment legislation are due to come into force on 6 April 2017.

The limit on a "week's pay", which amongst other things is used to calculate statutory redundancy payments, will increase from £479 to £489. 

The maximum compensatory award for unfair dismissal will increase from £78,962 to £80,541 (provided this is lower than the additional cap on the compensatory award of 52 weeks’ pay).

The increased amounts will apply where the event that gives rise to the entitlement to compensation or other payment (for example the effective date of dismissal or redundancy) occurs on or after 6 April 2017.

Employers considering redundancies where the termination date will be 6 April 2017 or later should take account of the increased amounts in their cost projections.