20 Feb 2018

BEIS announces increase to UK employment compensation limits


The Employment Rights (Increase of Limits) Order 2018 was laid before Parliament this week, announcing amendments to the calculation of statutory redundancy payments and "ordinary" unfair dismissal compensation.

Where an individual's effective date of termination of employment falls on or after 6 April 2018, the new increased rates will apply.

The main changes outlined in the Order are:

  • Increase to calculation of a week's pay for the purposes of calculating the basic award in unfair dismissal claims and statutory redundancy payments from £489 to £508; and
  • Increase to the maximum compensatory award for unfair dismissal from £80,541 to £83,682.

It is important to note that any dismissals preceding 6 April 2018 will be subject to the current rates, irrespective of when the claim is heard.



Paul Reeves

Paul Reeves

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