Annual compensation awards ? increase of limits
09 March 2016
From 6 April 2016 the weekly rate of statutory redundancy pay will increase to £479 and the maximum compensatory award will increase to £78,962.
The Employment Rights (Increase of Limits) Order 2016 has been laid before Parliament. The 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 table below.
|
Relevant statutory provision |
Subject of provision |
Old Limit |
New Limit |
|
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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
Section 124(1ZA)(a) of the 1996 Act(b) |
Limit on amount of compensatory award for unfair dismissal. |
£78,335 |
£78,962 |
|
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 |
|
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 |
Under the Employment Relations Act 1999 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 the percentage of the increase or decrease. 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 6 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 6 April 2016.