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Compensation limits to be increased from April

















As of 6 April 2015, there will be an increase in the statutory compensation limits that an employment tribunal can award and other amounts payable under employment legislation.  The new rates will be applicable if the effective date of termination falls on or after 6 April 2015.

As usual, the compensation figures have been revised in order to reflect the Retail Price Index (RPI) increase - 2.3% for the year ending September 2014 (in accordance with s 34 of the Employment Relations Act 1999).

The key changes to note are as follows:

Type of compensation Current figure From 6 April 2015

The maximum compensatory award (unfair dismissal)

£76,574 £78,335
The minimum basic award for certain unfair dismissals (dismissal for reasons of health and safety duties, acting as an employee representative or workforce representative, pension scheme trustee duties, or for reasons of trade union membership or activities) £5,676 £5,807
Maximum cap on a week’s pay (used for the purpose of calculating statutory redundancy pay and awards in unfair dismissal claims) £464 £475
Daily rate of guarantee pay £25 £26


This results in the maximum possible unfair dismissal award (basic plus compensatory) increasing to £92,585, and the maximum possible statutory redundancy payment increasing to £14,250.


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