Increase in limits for Tribunal awards and statutory payments

For cases where employment ends after 06 April 2016 the compensation limits are set to rise as follows:

CompensationCurrentlyFrom 06 April 2016
Cap on a week's pay£475£479
Cap on compensatory award for unfair
dismissal
£78,335£78,962
Minimum basic award for certain unfair
dismissals (e.g. dismissals for reasons
of health and safety, trade union membership)
£5,807£5,853

A week’s pay is one of the factors (along with age and length of service) which is used to calculate a statutory redundancy payment.

A week’s pay is also used as the basis for the “basic award”, which is the first element of an unfair dismissal claim award, designed to compensate for loss of job security. The second element is the compensatory award which is intended to cover the loss suffered by the employee as a result of the employer’s actions (e.g. loss of earnings).

If you need help calculating a statutory redundancy payment or for more information on any of the issues above, give one of our employment experts a call on 0113 201 4900 for a free, initial consultation.

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