The Employment Rights (Increase of Limits) Order 2017 will take effect from 6 April 2017, increasing the limits to certain tribunal awards and other amounts payable under employment legislation.
Key changes include increases to:
- the compensation award limit for unfair dismissal from £78,962 to £80,541;
- the minimum basic award in cases where a dismissal is unfair by virtue of health and safety, trade union, occupational pension trustee or employee representative reasons from £5,583 to £5,970;
- the maximum amount of a week’s pay to calculate statutory redundancy payments and basic awards for unfair dismissal from £479 to £489; and
- guarantee pay from £26 to £27 per day.
Where the “appropriate date” for the cause of action, such as the date of termination in an unfair dismissal claim, falls before 6 April 2017, the old limits will still be applicable irrespective of the date that compensation is awarded. Otherwise, the new limits will apply where the “appropriate date” falls on or after 6 April 2017.
