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.
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.