Increase of compensation limits payable under employment law

The Employment Rights (Increase of Limits) Order 2016 which will come in to force early next month will increase the limit for certain tribunal awards and other amounts payable under employment legislation. The increases in the Order reflect the increase of 0.8% in the retail prices index from 2014 to 2015.

The key amendments are as follows:

The limit on the amount of compensatory award for unfair dismissal will increase from £78,335 to £78,962.

The limit on the amount of a “week’s pay” will increase from £475 to £479.

The increases will apply to events occurring on or after 6th April 2016 and which give rise to an entitlement to compensation or other payment. The previous limits will apply where the event occurred prior to this.

The Order can be accessed via the following link: