Compensation Awards Increase from 6 April 2017

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Posted on 30 Mar 2017

The cap on the unfair dismissal compensatory award and the maximum amount of a week’s pay are to rise from 6 April 2017.

The amount of a week’s pay will increase to £489 (up from £479). The cap on the compensatory award will increase to £80,541 (up from £78,962), or 52 weeks' gross pay if lower.

The week’s pay figure is used for calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal.

The new limits apply where the effective date of termination is on or after 6 April 2017.#

For full details of the changes, download your copy of Employment Law Essentials.  

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