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Increase in rates for employment claims and redundancy payments…

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.

The updates in this blog are published for information only and provide an overview of employment law and best practice as at the date of publication. No action should be taken without seeking professional advice.