The government has today published The Employment Rights (Increase of Limits) Order 2014. This will alter the level of statutory payments or limits which apply to certain employment law rights created by legislation.
The most significant changes of note are:
|
Payment
|
Current rate
|
New rate from 6th April 2014
|
|
Limit on a week’s pay for the purposes of calculating (amongst others) a statutory redundancy payment or basic award
|
£450
|
£464
|
|
Limit on the maximum compensatory award in a standard unfair dismissal claim*
|
£74,200
|
£76,574
|
|
Guarantee payment
|
£24.20
|
£25
|
|
Minimum basic award in unfair dismissal claims where the dismissal was by reason of health & safety, employee representative, trade union or occupational pension trustee activities
|
£5,500
|
£5,676
|
*Remember, from 29th July 2013 there are alternative statutory caps that apply to standard unfair dismissal claims, with a successful claimant only being able to receive a maximum compensatory award of the lower of:
a) 1 year’s gross pay; or
b) The general statutory cap, as set out in the table.
The new rates will apply where the event giving rise to the requirement for the payment to be made occurs on or after 6th April. For example, in an unfair dismissal claim, the new limits will apply to any dismissal which takes effect on or after 6th April 2014, with the existing rates applying for events which take place before that date.
