It’s that time of year again when new rates apply for the purposes of calculating compensation and statutory redundancy payments.
The main changes in rates are:
- The maximum amount of a ‘week’s pay’ used to calculate statutory redundancy pay and other payments increases from £508 to £525.
- The maximum that can be awarded for unfair dismissal increases from £83,682 to £86,444. The upper limit stays the same at the lower of one year’s gross salary or the maximum limit.
- The limit on the daily amount of guarantee payment increases from £28 to £29 per day.
The increases apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6 April 2019. In unfair dismissal claims, this date is the effective date of termination of employment. If the dismissal was before 6 April 2019 then the old limits still apply.