Employment Law Compensation Limits 2018

Each year, the government conducts a review of the Employment Tribunal compensation limits and revises the rates. This year is no exception, and we have highlighted below some of the key increases in compensation limits and minimum awards, for your information:-

  • an increase to the limit on compensation for unfair dismissal from £80,541 to £83,682;
  • an increase on the limit of a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal from £489 to £508;
  • an increase in guarantee pay from £27 to £28 per day; and
  • an increase in the minimum basic award where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons from £5,970 to £6,203.

The above rates will apply to acts and events taking place on or after 6 April 2018. For example, if an employee is unfairly dismissed on 7 April 2018, then the compensation will be calculated using the new limit above. If an employee is unfairly dismissed on 5 April 2018, then the old limit will apply.

Other notable increases are as follows:-

  • From 1 April 2018, the weekly rates of statutory maternity pay, statutory paternity pay, statutory adoption pay and statutory shared parental pay will each increase to £145.18.
  • From 6 April 2018 the weekly rate of statutory sick pay will increase to £92.05.
  • From 9 April 2018 the weekly rate of maternity allowance will increase to £145.18.

If you have any questions please do not hesitate to contact Debbie Sadler at d.sadler@hewetts.co.uk.


Published on 12/04/2018

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