As is normal practice, the compensation limits have been updated for another year. In this very short update, we set out the key increases that HR professionals should be aware of. They are relevant when, for example, calculating statutory redundancy pay and considering potential exposure when faced with an unfair dismissal or discrimination claim.
Unfair Dismissal Compensation and Weekly Pay
From April 6, 2019, the following limits have applied:
- The maximum unfair dismissal compensatory award is £86,444 (an increase from £83,682).
- The limit on a week's pay for the purposes of calculating statutory redundancy pay and an unfair dismissal basic award is £525 (an increase from £508), meaning a maximum basic award or statutory redundancy payment of £15,750.
- The minimum basic award in certain automatically unfair dismissal cases, such as where the reason or principal reason for dismissal is related to trade union membership or activities or carrying out activities as a health and safety representative, is now £6,408 (an increase from £6,203).
Injury to Feelings
The Vento bands used for calculating awards for injury to feelings have also been updated. For claims presented on or after April 6, 2019, the bands are now as follows:
- A lower band of £900 to £8,800 (for less serious cases).
- A middle band of £8,800 to £26,300 (for cases that do not merit an award in the upper band).
- An upper band of £26,300 to £44,000 (for the most serious cases).
Awards in the most exceptional cases may exceed £44,000.