A reminder that the annual increases to Employment Compensation Limits come into effect from tomorrow (6 April 2017). They apply to dismissals occurring on or after that date.

The important increases are:-

1. The maximum compensatory award for unfair dismissal will go up from £78,962 to £80,541. Note that since 29 July 2013, there has also been an additional cap of one year’s salary on the compensatory award for unfair dismissal. Accordingly, the lower figure of the two will apply.

2. The limit on the amount of a week's pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £479 to £489.

3. The maximum redundancy payment and basic award will rise from £14,370 to £14,670.

Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.

For further information, please contact Sikin Andela