New compensation limits confirmed for April 2016


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Posted on 07 Mar 2016

Regulations have been laid before Parliament increasing the cap on the unfair dismissal compensatory award and the maximum amount of a week’s pay from 6 April 2016.

The amount of a week’s pay will increase to £479 (up from £475). The cap on the compensatory award will increase to £78,962 (up from £78,335), 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 2015.

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