The annual increases in compensation took effect on 6 April 2014. The most notable changes are as follows:
- The limit on a week's pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal has increased from £450 to £464.
- The maximum statutory redundancy payment and basic award for unfair dismissal has increased from £13,500 to £13,920.
- The maximum compensatory award for unfair dismissal has increased from £74,200 to £76,574. However, bear in mind that since 29 July 2013 the maximum compensatory award for unfair dismissal is the lower of 52 weeks' gross pay or the maximum provided by law (i.e. £76,574).
- The maximum total compensation for unfair dismissal has risen from £87,700 to £90,494 i.e. the aggregate of the maximum basic and compensatory awards.
The new rates apply where the event giving rise to the compensation (such as the termination of employment) occurs on or after 6 April 2014.