It has been the case for as long as we can remember (and that is a long time!) that the statutory limits for certain employment claims are reviewed annually and any changes take effect from 1 February each year. In particular, the limit on a week’s pay (for calculating things like statutory redundancy payments and the basic award in unfair dismissal cases) and the maximum compensatory award for unfair dismissal have had 1 February as their review dates.
Not any more!
Hidden away in the Enterprise and Regulatory Reform Act passed last year was clause 22, which provided for these limits to be brought into line with things like statutory maternity and statutory sick pay, all of which are changed with effect from 6 April each year.
The current maximum on a week’s pay for statutory redundancy payments (and the basic award) is £450 and the maximum compensatory award for unfair dismissal is £74,200 (or 52 weeks of the Claimant’s actual gross pay, whichever is the lower).
For the moment there are no details on what, if anything, will happen to the limits – but you can rest assured we will let you know as soon as possible.
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]).