New compensation rates


New compensation limits have been published.  The new limits will apply where the event giving rise to the compensation occurs on or after 6 April 2014.  So, if someone is dismissed in March and brings a claim in April, the old limits will apply to them, but the new limits will apply to anyone who is dismissed on or after 6 April.

The new limit on the amount of a week’s pay will increase from £450 to £464.  This is used to calculate statutory redundancy payments and the basic award for unfair dismissal.  This will bring the maximum statutory redundancy award to £13,920.

The maximum compensatory award for unfair dismissal is currently the lower of one year’s pay and £74,200.  This will change to the lower of one year’s pay and £76,574. 
 
Petra Venton