New rates and limits for redundancy payments and unfair dismissal

As from 6 April 2015 the rates and limits for employment claims will increase in line with the RPI. The main one for employers to be aware of is the limit on a week’s pay which is relevant to statutory redundancy payments as well as the basic award in unfair dismissal cases.

* The maximum compensatory award has also increased but of course it is also limited to 52 weeks’ pay, if that is lower.

The changes take effect where the effective date of termination (EDT) is on or after 6 April 2015.

The rates are as follows:

Compensation limit	Current figure	From 6 April 2015
Maximum limit on a week’s pay	£464	£475
Maximum compensatory award for unfair dismissal	£76,574*	£78,335*

If you would like to talk through a situation you are dealing with, or if you need advice on any aspect of employment law, please contact any member of the Pure Employment Law team (01243 836840 or [email protected]).

Please note that this update is not intended to be exhaustive or be a substitute for legal advice. The application of the law in this area will often depend upon the specific facts and you are advised to seek specific advice on any given scenario.

Any questions? Why not get in touch!

Our advice is always given in plain English without any waffle, and we focus on providing practical solutions to our clients’ problems.

LEGAL INFORMATION

Pure Employment Law | 1 Little London, Chichester, West Sussex, PO19 1PH
[email protected] | Tel: 01243 836840

Pure Employment Law is the trading name of Pure Employment Law Limited, registered in England and Wales with company number 07134294 and whose registered office is 1 Little London, Chichester, West Sussex, PO19 1PH. Pure Employment Law Limited is authorised and regulated by the Solicitors Regulation Authority with registration number 533794. A list of the company’s directors is available for inspection at the registered office

DISCLAIMER

The information contained in this website is for general information purposes only. The information is provided by Pure Employment Law and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.