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New rules: Increase to unfair dismissal and related awards from April 2016

The annual review of the maximum compensation that can be awarded in unfair dismissal and other cases sees an increase in the awards from 6 April.

Legal Alert

This update was published in Legal Alert - April 2016

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

The new maximum for a ‘week’s pay’ (used to calculate the basic award in unfair dismissal cases, statutory redundancy pay and a number of other awards) increases from £475 to £479. This means the maximum basic award increases from £14,250 to £14,370.

The compensatory award also increases from £78,335 to £78,962 (although this award is also subject to an alternative limit of one year’s gross pay if that is lower).

The new limits apply to dismissals (and other relevant events) occurring on or after 6 April 2016.

Operative date

  • 6 April 2016

Recommendations

  • Employers should budget for the new increases when considering whether to dismiss an employee

Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.

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