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:
- A 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 email@example.com
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