There will be an increase in the financial limits applying to certain awards of Employment Tribunals and other amounts payable under employment legislation with effect from 6th April 2018. The increases are based on the September 2017 Retail Prices Index which increased by 3.9% from the previous year.
The new limits will apply in dismissal cases where the effective date of termination of employment falls on or after 6th April 2018.
The effect of the changes is that from 6th April 2018 the maximum limit on a week’s pay for the purposes of calculating statutory redundancy pay and the basic award in an unfair dismissal claim will increase to £508 per week (from the current figure of £489). At the same time, the maximum compensatory award for unfair dismissal will increase to £83,682 (currently £80,541), and the minimum basic award for certain automatically unfair dismissals will increase to £6,203 (currently £5,970).
For further advice on this topic, or other employment issues, please contact Jane Laidler, Senior Partner and Chairman, at GRM Law: