New compensation limits in force

From 6 April 2017 there will be changes to some important limits used in calculating payments to employees and in respect of claims for compensation. 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 new rates take effect where the ‘appropriate date’ (eg the date of termination in an unfair dismissal claim) falls on or after 6 April 2017.