The Employment Rights (Increase of Limits) Order 2016

14 March 2016

This Order increases, from 6 April 2016, the limits applying to certain awards of employment tribunals, and other amounts payable under employment legislation, as specified in the Schedule to the Order.

Under section 34(2) of the Employment Relations Act 1999 (“the 1999 Act”), if the retail prices index for September of a year is higher or lower than the index for the previous September, the Secretary of State is required to change the limits, by Order, by the percentage of the increase or decrease (rounded up or down as specified in section 34(3) of the 1999 Act).

The increases made by this Order reflect the increase in the retail prices index of 0.8% from September 2014 to September 2015.

The increases apply where the event giving rise to the entitlement to compensation or other payments occurred on or after 6th April 2016. Limits previously in force under the Employment Rights (Increase of Limits) Order 2015 (S.I. 2015/226) are preserved by article 4 of this Order in relation to cases where the relevant event was before 6th April 2016.

A full impact assessment has not been produced for this Order because section 34 of the 1999 Act provides for indexation according to a pre-determined formula linked to the retail prices index.

Schedule table of increase of limits

 

Relevant statutory provision

Subject of provision

Old Limit

New Limit

1

Section 145E(3) of the 1992 Act

Amount of award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining.

£3,800

£3,830

2

Section 156(1) of the 1992 Act

Minimum amount of basic award of compensation where dismissal is unfair by virtue of sections 152(1) or 153 of the 1992 Act.

£5,807

£5,853

3

Section 176(6A) of the 1992 Act(a)

Minimum amount of compensation where individual excluded or expelled from union in contravention of section 174 of the 1992 Act and not admitted or readmitted by date of tribunal application.

£8,868

£8,939

4

Section 31(1) of the 1996 Act

Limit on amount of guarantee payment payable to an employee in respect of any day.

£26.00

£26.00

5

Section 120(1) of the 1996 Act

Minimum amount of basic award of compensation where dismissal is unfair by virtue of sections 100(1)(a) and (b), 101A(d), 102(1) or 103 of the 1996 Act.

£5,807

£5,853

6

Section 124(1ZA)(a) of the 1996 Act(b)

Limit on amount of compensatory award for unfair dismissal.

£78,335

£78,962

7

Paragraphs (a) and (b) of section 186(1) of the 1996 Act

Limit on amount in respect of any one week payable to an employee in respect of a debt to which Part 12 of the 1996 Act applies and which is referable to a period of time.

£475

£479

8

Section 227(1) of the 1996 Act

Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal.

£475

£479