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15 Feb 2015

Increase in the unfair dismissal compensatory award


Employment alert email

From 6 April 2015, the maximum compensatory award for unfair dismissal will increase from £76,574 to £78,335.

Since July 2013, unfair dismissal awards are subject to a cap, which is the lower of one year's pay or the current unfair dismissal cap; i.e. from 6 April, £78,335.

This increase will apply to dismissals taking place on or from 6 April 2015. Any dismissal before that date is subject to the current cap.

The statutory maximum amount of a week's pay will also increase from 6 April 2015, rising from £464 to £475, which will have an impact on unfair dismissal basic awards and statutory redundancy pay calculations.



Paul Reeves

Paul Reeves
Head of employment

T:  +44 20 7809 2916 M:  +44 7919 694 135 Email Paul | Vcard Office:  London

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