April sees increase in compensation limits
Monday 16th February 2015
The Government has announced a 2.3% increase in a range of compensation limits for ET claims. These rates take effect where the cause of action, such as a dismissal, is on or after 6 April 2015.
The new rates include uplifts to:
- The upper limit for unfair dismissal compensation, from the current £76,574 to £78,335. The lower limit of 12 months’ pay remains in place for those earning less than the maximum; and
- The cap on a week’s pay, which for example is used for the basic award in unfair dismissal and statutory redundancy pay purposes, rises from £464 to £475.
All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.