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25 Mar 2019

Annual increase to employment compensation limits


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.