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.