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Annual increases

We bring news of the increase to the limit on a week’s pay from £464 to £475 and the limit on compensation for unfair dismissal from £76,574 to £78,335 which will take affect in April. This is the second year running that the increase applies from April, instead of the previous increases in February each year.

The Employment Rights (Increase of Limits) Order 2015 SI 2015/226 brings the increases into force for claims on or after 6 April 2015.

The limit on a week’s pay applies when calculating an employee’s redundancy where there is no enhanced redundancy pay offered by an employer. It is used to calculate compensation awards in the event of a successful unfair dismissal claim.

The limit on compensation for unfair dismissal applies to the compensatory award and it represents the upper limit that a Tribunal will award.

Posted in: Employment

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