The government has published the proposed new statutory rates for certain awards made by employment tribunals and other amounts payable under employment legislation. If approved, the rates will take effect from 6 April 2025.
The key updates are as follows:
- The limit on a week’s pay (used to calculate statutory redundancy payments) will increase from £700 to £719.
- The maximum compensatory award for unfair dismissal will rise from £115,115 to £118,223.
- Statutory guarantee pay will increase from £38 to £39 per day.
Any employers planning to make redundancies which will take effect on or after 6 April 2025 will need to calculate statutory redundancy payments using the new figures.
If you need any assistance with understanding how the new rates will impact your business, conducting calculations based on the new rates or updating policies and/or contracts, please get in touch with a member of the team.