From April 2017 there will be an increase in the compensation limits and minimum awards that are payable under employment legislation.

The changes, which are set out in the Employment Rights (Increase of Limits) Order 2017 SI 2017/175, include:

  • the limit on compensation for unfair dismissal will increase from £78,962 to £80,541
  • the limit on a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will rise from £479 to £489, and
  • the minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £5,853 to £5,970

Please note that the new rates will only apply to cases where the appropriate date for the cause of action falls on or after 6 April 2017.

By way of example, in an unfair dismissal case the ‘appropriate date’ would be the termination date. For claims where the appropriate date falls before 6 April, the old limits will still apply. This is irrespective of the date on which compensation is awarded.