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New compensation limits

25th March, 2014

The recently published Employment Rights (Increase of Limits) Order 2014 outlines the increases to certain Employment Tribunal awards with effect from 6 April 2014.

The limit on a week’s pay for the purposes of statutory redundancy payments and a basic award in unfair dismissal proceedings will increase from £450 to £464.

The maximum compensatory award in unfair dismissal proceedings will increase from £74,200 to £76,574. The additional cap of one year’s salary on a compensatory award will still apply.

The rate of guarantee pay will increase from £24.20 per day to £25 per day.

The minimum basic award for unfair dismissals relating to health and safety duties, acting as an employee representative, dismissal for a reason relating to trade union membership, or an occupational pension trustee’s duties will increase from £5,000 to £5,676.

The new rates as set out above will apply to dismissal on or after 6 April 2014.

For further information of Employment Tribunal awards, please contact Claire Brook on 01244 405575 or send an email to [email protected].

 

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