The Employment Rights (Increase of Limits) Order 2018, which details the annual inflation-linked changes in limits on the compensation amounts which can be awarded by an Employment Tribunal (ET), has been laid before Parliament. The new rates will apply where the appropriate date falls on or after 6 April 2018.

The main changes are:

  • The maximum amount of a week's pay for the purpose of calculating a redundancy payment, or for various awards including the basic or additional award of compensation for unfair dismissal, increases from £489 to £508. The maximum award of an employee's statutory redundancy pay therefore increases from £14,670 to £15,240;
  • The minimum amount of compensation where an individual is found to have been unlawfully excluded or expelled from a trade union increases from £9,118 to £9,474; and
  • The statutory maximum compensatory award for unfair dismissal increases from £80,541 to £83,682.

There is no statutory cap on the amount an ET can award in discrimination cases.

See http://www.legislation.gov.uk/uksi/2018/194/pdfs/uksi_20180194_en.pdf for full details of the changes.

For Legal help and advice on employment matters, please contact us on 08081668860.

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