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In April 2021, a number of statutory rates and Tribunal compensation limits which are relevant to both employees and employers are set to increase. These limits are reviewed and annually updated in line with the retail price index (RPI).

Vento Bands

For claims presented on or after 6 April 2021, the Vento bands for calculating injury to feelings awards in discrimination claims, known as the ‘Vento bands’ will increase:
 
  • Lower band: £900-£9,100 (less serious cases)
  • Middle band: £9,100 to £27,400 (for cases that do not merit an award in the upper band)
  • Upper band: £45,600 (the most serious cases). Only exceptional cases can exceed the £45,600 cap.
Cap on Week’s Pay, Compensatory Award and Basic Award/Statutory Redundancy Pay

For effective dates of termination which fall on or after 6 April 2021, the following caps will apply: 
  • The statutory cap on a week’s pay will be £544 per week (previously £583 per week)
  • The statutory cap for unfair dismissal compensatory award will be the lower of £89,493 or 52 weeks’ gross pay (previously £88,519)
  • The maximum basic award for unfair dismissal purposes and statutory redundancy pay will be £16,320 (previously £16,140)
These new limits relating to dismissal compensation will apply for any dismissals where the effective date of termination is on, or after, 6 April 2021. Any dismissal prior to this date will apply the previous compensation limits.

National Living Wage and National Minimum Wage
 
From 1 April 2021, the national minimum wage rates will also increase. The new rates will be as follows:
  • Workers aged 23 and over: £8.91 per hour (National Living Wage)
  • Workers aged 21 to 22: £8.36 per hour
  • Workers aged 18 to 20: £6.56 per hour
  • Young workers rate aged under 18: £4.62 per hour
  • Apprentice rate: £4.30 per hour
Statutory Sick Pay

From 4 April 2021, the rate at which statutory sick pay is paid will increase from £95.85 to £96.35 per week.

Statutory family-related leave

The prescribed rate for statutory maternity pay, adoption pay, paternity pay and shared parental pay will also increase as of 4 April 2021 to £151.97 per week. The new right to statutory parental bereavement pay will also be paid at £151.97 per week.

Our experienced Employment Law Team at Curzon Green can advise you on any the above changes and how they may affect your business or employment rights. Please contact us today for a free no obligation consultation by calling us on one of the two telephone numbers referred to at the top of this page, or by email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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