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Employment law compensation limits increased

LEGAL UPDATE: Employment Law 

Increased limits on compensation for unfair dismissal, redundancy and other employment law events are introduced with effect from 6 April 2014.


The main changes to the limits are:

  • an increase in the amount of a ‘week’s pay’ for the purposes of calculating statutory redundancy pay and the basic award for unfair dismissal, from £450 to £464;
  • an increase in the compensatory award for unfair dismissal, from £74,200 to £76,574. This is subject to a cap of 12 months’ pay, introduced in July 2013, which means anyone earning less than £76,574 per annum will receive less.


The new limits apply where the redundancy, dismissal or other event giving rise to the compensation occurs on or after 6 April. The old limits continue to apply where the event is before that date.


Employers should budget for the new increases if a potential redundancy, dismissal or other relevant event could take place on or after 6 April 2014.

For any further advice on Employment Law issues please contact Guy Salter


Added: 23 Jan 2014 14:24

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