New compensation limits in force from 6 April 2014

Posted 08/04/2014

New compensation limits for 2014/2015 are now in force in accordance with the Employment Rights (Increase of Limits) Order 2014. The Order increases the limits applying to certain awards of employment tribunals and to other amounts payable under employment legislation.

The key changes include:

1) The maximum amount of a week’s pay (which is used, for example, to calculate an employee’s statutory redundancy entitlement and the basic award for unfair dismissal claims) has increased from £450 to £464; and

2) The maximum compensatory award for unfair dismissal claims has been increased from £74,200 to £76,574. A further cap of 52 weeks’ pay has been in force since 29 July 2013, and the limit which will apply for compensatory awards is the lower of the two caps in each particular case.

For more information on the new compensation limits, please contact Abigail Adams by email (abi.adams@ashtonslegal.co.uk) or 01473 261332. Further information on our Employment services can be found here.