New Compensation Limits in force from 6 April 2018

Compensation limits and minimum awards that are payable under employment legislation are set to increase as follows from 6 April 2018:

•  the compensatory award for unfair dismissal will rise from £80,541 to £83,682;
• the limit on a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal, will increase from £489 to £508;
• guarantee pay will increase from £27 to £28 per day;
• the minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £5,970 to £6,203.

The new rates take effect where the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6 April 2018. Where the appropriate date falls before 6 April, the old limits will still apply.