Annual Increases to Tribunal Limits, Compensation and Redundancy Payments Announced
The government has published The Employment Rights (Increase of Limits) Order 2024, which sets out the intended annual increases to unfair dismissal compensation and the maximum week’s pay for the purposes of calculating statutory redundancy payments. These changes are still subject to parliamentary approval and if approved, will take effect from 6 April 2024. The key changes are as follows:
- The maximum week’s pay for calculating statutory redundancy pay and unfair dismissal awards increases to £700 (previously £643).
- The maximum basic award for statutory redundancy pay and normal unfair dismissal awards increases to £8,533 (previously £7,836).
- The maximum compensatory award for normal unfair dismissal increases to £115,115 (previously £105,707).
- The limit on the amount of a guarantee payment payable to an employee in respect of any day increases to £38 per day (previously £35).
Also, as a reminder, the confirmed National Minimum Wage rises for workers which will take effect from 1 April 2024 are as follows:
- The national living wage for those aged over 21 will increase to £11.44 (previously £10.42).
- The national minimum wage for those aged between 18 and 20 will increase to £8.60 (previously £7.49).
- The national minimum wage for those over compulsory school age but not yet 18, and for apprentices aged 19 and under, will increase to £6.40 (previously £5.28).
With so many other legislative changes in the pipeline for 2024, you should check that your employment contracts and policies are up to date with current employment law. We can assist with these tasks so please do not hesitate to contact us for further information.