Award limit annual increases about to come in

Employment protection award limits are subject to the annual increases by virtue of the Employment Rights (Increase of Limits) Order 2018 (SI 2018/194), which comes into force on 6 April 2018.

The two principal changes are, first, that the statutory maximum on a “week's pay” for relevant calculations rises from £489 to £508. This means that the maximum redundancy payment or basic award for unfair dismissal goes up to £15,240.

Secondly, the maximum compensatory award goes up from £80,541 to £83,682. This gives a normal maximum for unfair dismissal of £98,922 (£83,682 + £15,240).

Increases also apply to minimum unfair dismissal awards for reasons relating to trade union, and health & safety issues.

Practitioners should bear in mind that the old awards apply to cases lodged before the new statutory instrument comes into force, regardless of when they are heard.