What are the new increases in Compensation Limits, for Employment Claims?

Increases in Statutory Compensation limits came in to force on 6th April 2016.

In respect of claims for unfair dismissal the maximum compensation award has now been increased to the lower of 1 years’ gross pay or £78,962.  The basic award has also been increased by capping the weekly pay at £479, up to a maximum of 30 weeks depending upon age and length of service.

In redundancy cases, Statutory Redundancy Pay (SRP) is also calculated on the basis of the employee’s age and length of service, again with a similar cap imposed on weekly pay.

The Employment Tribunals still have power to award compensation for wrongful dismissal (that is termination of employment with insufficient or no notice), up to £25,000 but higher awards can be ordered by the County Court.

The qualifying period for many claims remains at 2 years employment but there are some very important claims for which no qualifying period of employment at all is required, for example discrimination claims. 

There are many potential claims an employee or former employee can bring arising from an employment situation.  As always, it is best to obtain legal advice at the earliest possible stage if as an employer you are facing a situation where potential claims could be brought against you, or as an employee you are considering your options and potential claims you may be able to bring arising out of your employment.

Our Employment Team are on hand to offer advice and assistance regarding your specific employment matter, please contact Richard Gregory on tel: 01264 325811, email: rgregory@bsandi.co.uk, who will be happy to help.