25 Mar 2019

Annual increase to employment compensation limits

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The Employment Rights (Increase of Limits) Order 2019 has been laid before Parliament, setting out increases to the compensation limits and minimum awards payable under employment legislation with effect from 6 April 2019.

The main changes are as follows:

  • the maximum compensatory award for unfair dismissal will be the lower of 12 months' salary and £86,444 (up from £83,682); and
  • the limit on a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal increases from £508 to £525.

The new rates will apply where an individual's effective date of termination of employment falls on or after 6 April 2019. The current limits will continue to apply in respect of any dismissals which take place before 6 April 2019, irrespective of the date on which compensation is awarded.

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Kate Brearley

Kate Brearley
Partner

T:  +44 20 7809 2107 M:  +44 7885 358 480 Email Kate | Vcard Office:  London