firm news

Emma O'Connor
Emma O'Connor,
Rate changes from 6th April 2014
05 March 2014

The government has announced new compensation limits from 6th April 2014. We report on these new rate rises.

A week's pay

This will increase from £450 per week to £464 per week.

A ‘week’s pay’ is used to calculate statutory redundancy pay and also the basic award in unfair dismissal cases.

Maximum compensation for unfair dimissal

This will also increase from 6th April 2014 from £74,200 to £76,574.

Remember that from Summer 2013, compensation for unfair dismissal has been subject to an overall cap of 12 months’ pay which means that the maximum compensation a claimant could be awarded is limited to £76,574 or 12 months’ pay - whichever is the lower figure.

When do these new rates apply?

The new rates will apply to dismissals on/after 6th April 2014. For any dismissals or tribunal claims before this date the old pre-6th April 2014 rates will apply.

Rates previously changed on 1st February each year – this is the first year the changes to rates have taken effect from 6th April.

For further information, please contact our Employment Team on 0118 952 7284 or submit an enquiry.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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