New compensation limits in force from 6 April 2017

The Employment Rights (Increase of Limits) Order 2017 SI 2017/175 has been laid before Parliament and will increase the compensation limits and minimum awards that are payable under employment legislation from 6 April 2017.
 
Notable changes include:
 
·         an increase to the limit on compensation for unfair dismissal from £78,962 to £80,541
·         the limit on a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal, will increase from £479 to £489
·         guarantee pay will increase from £26 to £27 per day
·         the minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative,             trade union, or occupational pension trustee reasons will increase from £5,853 to £5,970.
 
The new rates take effect where the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6 April 2017. Where the appropriate date falls before 6 April, the old limits will still apply, irrespective of the date on which compensation is awarded.

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