New rules: Increase to unfair dismissal and related awards from April 2016

Thursday 14th April 2016

The annual review of the maximum compensation that can be awarded in unfair dismissal and other cases sees an increase in the awards from 6 April.

 

The new maximum for a ‘week’s pay’ (used to calculate the basic award in unfair dismissal cases, statutory redundancy pay and a number of other awards) increases from £475 to £479. This means the maximum basic award increases from £14,250 to £14,370.

 

The compensatory award also increases from £78,335 to £78,962 (although this award is also subject to an alternative limit of one year’s gross pay if that is lower).

 

The new limits apply to dismissals (and other relevant events) occurring on or after 6 April 2016.

Operative date

  • 6 April 2016

 

Recommendation

  • Employers should budget for the new increases when considering whether to dismiss an employee

 

 

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Author: Lisa Clark

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