Increase in Compensation Limits From 6 April 2014

    View Authors February 2014

    The Government has announced new limits on certain Employment Tribunal awards coming into effect on 6 April 2014.  The two key changes to be aware of are:

     

    • The limit on the compensatory award for "ordinary" unfair dismissal will increase from £74,200 to £76,574; and
    • The maximum amount of a week's pay for the purposes of calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £450 to £464.

    These new limits will apply to dismissals which take place on or after 6 April 2014.

    Note that with effect from 29 July 2013, the cap on the compensatory award for “ordinary” unfair dismissal was changed to the lower of the statutory limit set out above and 52 weeks’ pay of the individual concerned.