News Article

The Employment Rights (Increase of Limits) Order 2019 will increase the maximum amount of a “week’s pay” from £508 to £525 from 6 April 2019. A week’s pay is used to calculate statutory redundancy pay, as well as payments to employees in the event of insolvency and various tribunal awards, including the unfair dismissal basic and additional awards.

The other key increases include the limit on the daily amount of statutory guarantee pay, which will increase from £28 to £29. The limit on the amount of the unfair dismissal compensatory award will also rise from £83,682 to £86,444 (there is an additional cap of one year’s gross salary on the compensatory award). Also the minimum basic award for certain unfair dismissals (such as dismissals due to trade union membership or activities, for carrying out activities as health and safety or employee representative or for carrying out duties as an occupational pension scheme trustee) will go up from £6,203 to £6,408.

The increases apply where the event giving rise to the entitlement to compensation or other payment occurred on or after 6 April 2019. The sums previously in force under the 2018 Order will continue to apply where the relevant event was before 6 April 2019.

The main changes include thhe amount of a “week’s pay” for calculating statutory redundancy pay and certain unfair dismissal awards, which is to go up from £508 to £525 from 6 April 2019.The maximum unfair dismissal compensatory award will increase from £83,682 to £86,444 and the limit on the daily amount of statutory guarantee pay is to rise from £28 to £29.