Employment law updates


The Government has announced an increase to the compensation awards that can be made by the Employment Tribunals and to the statutory rates used to calculate certain employee payments.

From 6 April 2014 the following increases will come into force:

  • week’s pay (used for calculating statutory redundancy payments and certain tribunal awards) will increase from £450 to £464.
  • The maximum compensatory award for a successful claim of unfair dismissal will rise from £72,000 to £76,574 (although since 29 July 2013 these awards are the lower of 52 weeks’ pay and the maximum compensatory award).
  • The maximum basic award for unfair dismissal/statutory redundancy pay therefore increases from £13,500 to £13,920.The minimum basic award will increase from £5,000 to £5,676.

The above increases will only apply to events that give rise to compensation that occur on or after 6 April 2014.

The following statutory rates have also increased in line with inflation:

  • Guarantee pay (used during periods of layoff and short-time working) will increase from £24.20 to £25 per day.
  • Sick pay will rise from £86.70 to £87.55.
  • Maternity, ordinary and additional paternity and adoption leave will rise from £136.78 to £138.18.

For further information please contact Reina D’costa at reina@bizlawuk.co.uk

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